SHRI GURU NANAK DEV CHARITABLE TRUST,LUDHIANA vs. INCOME TAX OFFICER (EXEMPTIONS), JALANDHAR
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE
Per Dr. M. L. Meena, AM:
The present appeal has been filed by the assessee against the order
of the Ld. Commissioner of Income Tax (Appeals)-2, Jalandhar dated 13.02.2018 in respect of Assessment Year 2014-15.
2 ITA No. 271/Asr/2018 Guru Nanak Dev C. Trust v. ITO 2. The assessee has raised the following grounds of appeal:
“The learned commissioner appeal has confirmed the addition of Rs. 155000/- on account of interest on car loan. The assessee is running homeopathic college and has bought Fortuner Car. The trustees of the trust are running their own business and are having their personal car also. Copy of registered certificate of cars was submitted to the learned income tax officer as well as commissioner of income tax (appeal). It has also win submitted even if interest is deducted from expenses. The assessee has spent more than 85% of its receipts during the year. So addition of interest of Rs.155000/- paid to bank for purchase of car is not justified and should be deducted.”
The issue disputed before us is regarding addition of expenses
claimed towards interest of Rs.155000/- paid to bank on account of
purchase of car. Admittedly, the car was purchased in the preceding
assessment year and depreciation was added in in the computation itself
and hence no disallowance on account of purchase of car amounting
depreciation could be made in this year as rightly decided by the Ld. CIT
(A) while granting relief to the assesse. The appellant contended that
trustees are having their own cars and no disallowance is justified interest
on car loan of Rs. 1,55,500. It is further stated that 85% of the funds have
been spend even if disallowance on account of interest is up held. The
CIT(A) has also considered the submission of the assesse and addressed
the grievance of the appellant raised in the ground as regards to the
interest expense claim of Rs.155000/- paid to bank on account of purchase
3 ITA No. 271/Asr/2018 Guru Nanak Dev C. Trust v. ITO of car. In our view, the Ld. CIT(A) has been justified in directing the AO to
verify the contention of the appellant that 85% of the funds have been
spent even if disallowance on account of interest is up-held and compute
the tax liability accordingly.
In view of above, we find no infirmity in the order of the Ld. CIT(A)
and direct the AO to verify the contention of the appellant that 85% of the
funds have been spent even if disallowance on account of interest is up-
held and compute the tax liability as per law.
In view of aforesaid discussion, the appeal of the assesse is disposed
of in the terms indicated as above.
Order pronounced under rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 on 31.01.2023.
Sd/- Sd/- (Anikesh Banerjee) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr./P.S.* Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T.
