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| The Tax Publishers2019 TaxPub(DT) 4185 (Del-Trib) INCOME TAX ACT, 1961,
Section 32
Where AO disallowed claim of depreciation because acquisition of asset was taken as applicable for charitable purposes and value of assets stood written-off fully, but assessee was entitled to depreciation under section 32 on assets whose cost had been allowed as application to charitable purposes under section 11(1)(a), thus, the addition on account of depreciation was deleted.
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Depreciation - Allowabili ty - Cost of asset allowed as application of income -
AO disallowed claim of depreciation by considering it to be double deduction/notional application because acquisition of asset was taken as applicable for charitable purposes, value of assets stood written-off fully and therefore, no depreciation was allowable. CIT(A) also confirmed addition on account of claim of depreciation. Held: Issue was covered in favour of assessee by Judgment of Supreme Court in case of CIT v. Rajasthan and Gujarat Charitable Foundation (2018) 402 ITR 441 (SC) : 2017 TaxPub(DT) 5384 (SC) in which it was held that 'the assessee was entitled to depreciation under section 32 on assets whose cost had been allowed as application to charitable purposes under section 11(1)(a)'. Thus, order of the authorities was set aside and the addition on account of depreciation was deleted.
Relied:CIT v. Rajasthan and Gujarat Charitable Foundation (2018) 402 ITR 441 (SC) : 2017 TaxPub(DT) 5384 (SC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2010-11
INCOME TAX ACT, 1961,
Section 11
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