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Friday 19 February 2016

Where entire cost of property (both land and building) was taken by the assesssee as building only and depreciation was claimed there on. On Sale of the property AO took 1/6 th of the consideration towards building and balance towards land. AO reduced sale allo cated towards building from block and took cost of land at NIL value. Hence entire sale consideration allocated towards land was taken as capital gain. CIT A allocated WDV of property in the same ratio as sale consideration and applied cost of indexation on such deemed value of land. Held by ITAT that stand taken by CIT A is reasoned one and has rightly apportioned the WDV between land and building. [Para 22 Construction Engineers pronounced by ITAT Asr on 18-02-2016]


In Construction Engineers pronounced by ITAT Asr on 19-02-2016, delay of 168 days condoned by ITAT where order of CITA was misplaced by one of the employees of the assessee


ITAT Delhi Bench in the case of Maharashtra Seamless Ltd., held that where in the case of mixed funds, it is not possible to ascertain as to whether investment in tax free bonds is from borrowed funds on assessee’s own funds no disallowance was warranted.


ITAT Delhi in the case of Dy. CIT vs. Jindal Photo Ltd. The burden is on the Assessing Officer to establish nexus of expenses incurred with the earning of exempt income before making any disallowance u/s 14A of the Act.