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The Tax PublishersITA Nos. 1514 and 1515/Bang/2016, ITA No. 137/Bang/2017, ITA Nos. 1730, 1731 & 1732/Bang/2016
2019 TaxPub(DT) 5440 (Bang-Trib)INCOME TAX ACT, 1961
Section 11
Amendment made by the Finance (No.2) Act, 2014 with effect from 1-4-2015 by insertion of sub-section (6) to section 11 is applicable prospectively w.e.f. 1-4-2015, therefore, during the year under consideration, depreciation had to be allowed as deduction even when cost of acquisition of depreciable asset had been treated as application of income in the year of its acquisition.
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Charitable trust - Exemption under section 11 - Case of asset already allowed as application of income - Allowing of depreciation only
Assessee-charitable trust claimed depreciation on asset. AO denied depreciation on the ground that at the time of acquiring relevant capital asset, cost of acquisition was considered as application of income therefore, allowing depreciation would amount to allowing double deduction.Held: Amendment made by the Finance (No.2) Act, 2014 with effect from 1-4-2015 by insertion of sub-section (6) to section 11 is applicable prospectively w.e.f. 1-4-2015, therefore, during the year under consideration depreciation has to be allowed as deduction even when cost of acquisition of depreciable asset had been treated as application of income in the year of its acquisition.
Followed:CIT v. Rajasthan & Gujarati Charitable Foundation Poona, (2018) 89 taxmann.com 127 (SC) : 2017 TaxPub(DT) 5384 (SC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11 to 2012-13
INCOME TAX ACT, 1961
Section 11(1)(a)
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