INCOME TAX ACT, 1961

Section 11

Charitable trust - Exemption under section 11 - Allowability of depreciation on assets, cost of which allowed as application of income -

AO denied assessee-society's claim of depreciation on assets, which were acquired in earlier years and cost of those assets were already allowed as application of income. However, CIT(A) allowed the said claim of the assessee. Aggrieved, Revenue was in appeal. Held: Amendment made in section 11 by insertion of sub-section 6 with effective from 1-4-2015 provides that depreciation is to be disallowed from assessment year 2015-16 in determining income of charitable trust which are required to apply or accumulate or set apart for application in respect of assets acquired and whose acquisition cost has been claimed as an application of income under section 11. Thus, the said amendment in section 11(6) vide Finance Act No. 2/2014 would be effective from assessment year 2015-16. Further, as the subject assessment was prior to the assessment year 2015-16, the said amendment would not be applicable to the instant case.

Followed:Indraprastha Cancer Society & Research Centre v. ITO (Exemption) [ITA No. 2555/Del/2015, dt. 2-7-2018]

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Section 11(1)(a)

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