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2015 (5) TMI 1017 - ITAT CHENNAIDepreciation on the asset and the investment made on such asset allowed as application of income under Section 11 - double deduction - Held that:- Depreciation is the exhaustion of the effective life of a fixed asset owing to 'use' or obsolescence. It may be computed as that part of the cost of the asset which will not be recovered when the asset is finally put out of use. The object of providing for depreciation is to spread the expenditure, incurred in acquiring the asset, over its effective lifetime; the amount of the provision, made in respect of an accounting period, is intended to represent the proportion of such expenditure, which has expired during that period. It cannot be held that double benefit is given in allowing claim for depreciation for computing income for purposes of section 11. See CMS Educational & Charitable Trust [2013 (4) TMI 771 - ITAT CHENNAI ] - Decided in favour of the assessee.
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