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TMI Blog2013 (3) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... his appeal for assessment year 2007-08 against order dated 25.8.2011 of ld CIT(A)-1, Mumbai on the following grounds: 1. Whether on the facts and circumstances of the case and in law, Hon ble High Court was right in ignoring the ratio of Hon ble Supreme Court judgments in the case of Escorts Ltd vs. Union of India(199 ITR 43) wherein, Hon ble Supreme Court has held that double deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. During the course of assessment proceedings, the Assessing Officer noticed that assessee has claimed deficit of ₹ 52,20,012/- after claiming exemption u/s.11 of the I.T.Act. The Assessing Officer also, inter alia, noticed that assessee has shown rent received from commercial complex of ₹ 14,72,376 and ₹ 60,000/- respectively, on which it has claimed deduction u/s.24 @ 30%. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income tax Act but in accordance with the normal rule of accountancy and referred to the Board Circular dt. May 19,1968.. Therefore, he denied the claim of deduction u/s.24(a) of the Act. Being aggrieved, assessee filed appeal before ld CIT(A). 4. Ld CIT(A), after considering the submissions of assessee, has held that AO is not justified in disallowing deduction claimed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use property claimed deduction u/s.24 @ 30%. We observe that there is no provision in Income tax Act that if the property of the assessee trust is held for charitable purposes, no deduction u/s.24 would be available. Section 24 itself allows deduction of 30% of rental income. Hence, we are of the considered view that ld CIT(A) has rightly directed the AO to allow the claim of the assessee. Ld D.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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