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| The Tax Publishers2019 TaxPub(DT) 8085 (Ahd-Trib) INCOME TAX ACT, 1961
Section 11
AO had not considered that there are two separate issues, i.e., one is application of income, and second is computation of income. So far as application of income was concerned, amount applied for acquiring fixed assets was covered under section 11(1)(a) and the same was allowable as income applied for charitable or religious purpose, and second was allowability of depreciation in computation of income. Depreciation was allowable to assessee trust in computation of income.
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Charitable trust - Exemption under section 11 - Allowability of depreciation on fixed assets, cost of which had already been considered as application fo income -
Assessee, a charitable trust claimed depreciation on fixed assets. AO rejected assessee's claim on the ground that amount utilized for acquiring fixed assets had been allowed as application of income and, therefore, allowance of depreciation would amount to double deduction.Held: AO had not considered that there are two separate issues, i.e., one is application of income, and second is computation of income. So far as application of income was concerned, amount applied for acquiring fixed assets was covered under section 11(1)(a) and the same was allowable as income applied for charitable or religious purpose, and second was allowability of depreciation in computation of income. Depreciation was allowable to assessee-trust in computation of income.
Followed:Dy. CIT v. Bholaram Education Society dated 14-9-2017 & Asstt. CIT v. Bholaram Education Society dated 29-3-2019 ITA No. 3041/Ahd/2016 : 2019 TaxPub(DT) 2498 (Ahd-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, AHMEDABAD BENCH
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