1.  CIT Vs. Smt. Kailash Grover, ITA No. 364 of 2013 (O&M), Date of Decision: 05.12.2014, Punjab & Haryana High Court

Addition cannot be made in respect of same type of expenses, which were accepted by A.O. in preceding assessment years

Held:

The assessee had filed a return, declaring an income at of Rs. 5,72,340/- against a gross receipt of Rs. 1.12 crores for the A.Y. 2007-08 and claimed the expenses of Rs. 82,00,602/-, giving a gross profit rate of 26.96% & net profit rate of 5.23% and gross profit rate for preceding A.Y. 2006-07 of 3.56% only. The AO disallowed an amount of Rs.60,01,578/- by treating it as in-genuine expenditure & fictitious payments. However the A.O. had allowed the same type of expenses in earlier years. Accordingly the appeal is dismissed.

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2.  ITO Vs. ARC Charities, I.T.A. No. 2233/Mds/2014, Date of Pronouncement: 11.12.2014, ITAT Chennai

In case of trusts registered u/s.12A, the claim of depreciation does not amount to double deduction

Held:

“Depreciation should be reduced from the income for determining the percentage of funds which have to be applied for the purpose of the trust. This does not amount to double deduction as contemplated by the Revenue”. Hence the claim of depreciation does not amount to double deduction. We do not find any infirmity in the order of CIT(Appeals) and the same is upheld.”

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Note: This case is valid upto A.Y. 2013-14