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| The Tax Publishers2020 TaxPub(DT) 0007 (Bang-Trib) INCOME TAX ACT, 1961
Section 11
Income of trust was required to be computed under section 11 on commercial principles after providing for allowance for normal depreciation and deduction thereof from gross income of the trust and same did not amount to double deduction. Further, amended provisions of section 11(6) are prospective in nature and operative effective from 1-4-2015 were not applicable during the concerned year. Accordingly, no depreciation could be disallowed.
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Charitable trust - Exemption under section 11 - Allowability of depreciation on assets -
Assessee-trust claimed depreciation on assets. AO denied assessee's claim on the ground that cost of concerned assets had already been allowed as application of income in the year of acquisition purchase of asset and allowance of depreciation would amount to double deduction.Held: Income of trust was required to be computed under section 11 on commercial principles after providing for allowance for normal depreciation and deduction thereof from gross income of the trust and same did not amount to double deduction. Further, amended provisions of section 11(6) are prospective in nature and operative effective from 1-4-2015.
Followed:CIT v. Karnataka Reddy Janasangha (2016) 389 ITR 229 (Kar) : 2016 TaxPub(DT) 3655 (Karn-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 11(1)(a)
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