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| The Tax Publishers2019 TaxPub(DT) 0552 (Ahd-Trib) INCOME TAX ACT, 1961
Section 11(6)
Even if entire expenditure incurred for acquisition of capital assets is treated as application of income for charitable purpose under section 11(1)(a), assessee would continue enjoying benefit of depreciation under section 32.
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Charitable trust - Bar of section 11(6) - Acquisition of capital asset treated as application of income -
It was case of Revenue in the instant case that once the capital expenditure has been claimed as deduction under section 11(1)(a) as application of income for the objects of trust, depreciation claimed on same assets amounts to double deduction which was not permissible in law having regard to provisions of section 11(6) which prohibits such deduction.Held: It was held in Rajasthan and Gujarati Charitable Foundation Poona, 89 taxmann.com 127 (SC) that even if the entire expenditure incurred for acquisition of capital assets is treated as application of income for charitable purpose under section 11(1)(a), assessee would continue enjoying benefit of depreciation under section 32. Supreme Court further held that specific provision of section 11(6), which bars claim of depreciation of expenditure incurred for charitable purposes, is prospective and applies only from assessment year 2015-16.
Followed:CIT-III, Pune v. Rajasthan And Gujarati Charitable Foundation Poona (2018) 402 ITR 441 (SC) : 2017 TaxPub(DT) 5384 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, AHMEDABAD BENCH
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