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2014 (10) TMI 967

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..... the income of the Trust is required to be computed u/s. 11 on commercial principles. Claim of carry forward of deficit to be set off against the income of the subsequent years - Held that:- As the income has to be computed on commercial principles like business loss which is allowed to be carried forward and set off with the profit of subsequent years. Similarly, the deficit in the case of a trust is allowed to be carried forward to be set off in subsequent years. That being so, findings of the Ld. CIT(A) need no interference. - Decided against revenue - I.T.A. No. 5674/Mum/2011 - - - Dated:- 20-10-2014 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER Appellant by: Shri Vivek Batra Respondent b .....

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..... 83,15,310/- in addition to the normal depreciation of ₹ 2,14,29,366/-. The assessee was asked to justify its claim. It was explained that during the year, the assessee has claimed additional depreciation of ₹ 83,15,310/- on hospital equipment , furniture fixture which has completed 10 years of useful life and computer which has completed 3 years of useful life. The additional depreciation has been claimed on asset which has outlived its useful life. To substantiate, the assessee relied upon certain judicial decisions. 3.1. After examining the facts in the light of the Judicial decisions, the AO was of the opinion that various High Courts have deliberated the issue and have came to the conclusion that the trust too can claim .....

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..... l evidences were in the form of certificates certifying that the assets have outlived their useful life. These certificates are at page-21, 35 and 42 of the paper book. In his remand report, the AO instead of verifying the veracity of the certificates questioned the admission of additional evidences by the Ld. CIT(A). The Ld. CIT(A) while deciding the issue drew support from the decision of the Hon ble Bombay High Court in the case of Institute of Banking Personnel Selection 264 ITR 110 and concluded by observing that the income of the Trust is required to be computed u/s. 11 on commercial principles after providing for allowance for normal depreciation and deduction thereof from gross income of the trust. The Ld. CIT(A) went on to delete t .....

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