2012 (3) TMI 513

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..... preferred by the Assessing Officer (AO), two effective grounds of appeal have been raised 1. On the facts and in the circumstances of the case, and in law, the Ld. CIT(A), Mumbai erred in deleting an amount of ₹ 1,63,87,142/- added in the income of the assessee on the grounds that the assessee had exercised its option u/s. 11(1) read with Explanation 2 of the Act to spend this amount .....

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..... deduction in computing the real income of the assessee on general principles or under section 11(1)(a) of the Income-tax Act, 1961. Income of a charitable trust derived from building, plant and machinery and furniture is liable to be computed in a normal commercial manner although the trust may not be carrying on any business and the assets in respect whereof depreciation is claimed may not be bus .....

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..... quent year in which adjustment had been made having regard to the benevolent provisions contained in section 11 of the Act and such adjustment will have to be excluded from the income of the trust under section 11(1)(a). Respectfully following the order of the Hon ble High Court, we dismiss the appeal filed by the AO. Order pronounced on the 30th day of March, 2012. - - TaxTMI - TMITax .....

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