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2014 (2) TMI 988 - AT - Income TaxClaim of depreciation u/s 32(1) of the Act – Computation of income u/s 11(1)(a) of the Act - Whether the computation of income u/s 11(1)(a) of the Act, without classification under various heads as set out in section 14 of the Act amount to double deduction – Held that:- The decision in DIT vs. Vishwa Jagriti Mission [2012 (4) TMI 289 - DELHI HIGH COURT] followed - claim of depreciation on fixed assets utilized for the charitable purposes has to be allowed while arriving at the income available for application to charitable and religious purposes, since the income of the society should be computed on the basis of commercial principles - there is no business activity - As seen from the computation of income placed on record, assessee has not claimed any application of income towards purchase of assets in this year - A.O. has not brought out anything on record that assets purchased by assessee have been claimed as deduction in earlier years and without examining the issue A.O. cannot disallow the amount, simply because there was a case law establishing the principle that double deduction is not allowable – the order of the AO and CIT(A) set aside and the claim of the depreciation is allowed – Decided in favour of Assessee.
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