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TMI Blog2021 (2) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... w he has arrived the figure. Further we make it clear that purchase of capital asset by availing loan cannot be construed as application of income. There is a difference between application of income and utilization of loan as a source for acquisition of capital asset. Only the repayment of loan out of income will be construed as application of income. - ITA No. 2858/Bang/2017 - - - Dated:- 4-2-2021 - Chandra Poojari, Member (A) And Beena Pillai, Member (J) For the Appellant : K. Sowmya, Advocate For the Respondents : Priyadarshi Mishtra, Addl. CIT (D.R.) ORDER Chandra Poojari, Member (A) This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-14, Bangalore dt. 12.10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be carried forward. The Assessing Officer rejected this claim of the assessee. The assessee filed a notice for accumulation in Form 10 by way of abundant caution. The Assessing Officer rejected this notice on the ground that permission is sought for accumulation for purposes not determinable and objects enshrined in the Trust Deed in a blanket manner have been incorporated in the notice and accumulation in such a global manner was definitely not contemplated in Section 11(2) and was not permissible. The Assessing Officer further held that the amount sought to be accumulated has not been specified in the notice. The assessee had claimed ₹ 7,35,018 as depreciation admissible, but the Assessing Officer held that deduction on account of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he application of income. The learned Departmental Representative relied on the order of learned CIT (Appeals). 5. We have heard both the parties and perused the material on record. Admittedly, the learned CIT (Appeals) computed the application amount in paras 5 6 wherein he has mentioned the value of the asset purchased at ₹ 7,15,540. However he has not mentioned how he has arrived the figure. Further we make it clear that purchase of capital asset by availing loan cannot be construed as application of income. There is a difference between application of income and utilization of loan as a source for acquisition of capital asset. Only the repayment of loan out of income will be construed as application of income. 6. Ground No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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