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2015 (12) TMI 1365 - ITAT BANGALOREDepreciation on the asset put into use - assessee is a registered charitable trust - Held that:- As decided in CIT, Karnataka I Versus Society Of The Sisters Of St. Anne [1983 (8) TMI 44 - KARNATAKA High Court ] it is not in dispute that if the mercantile system is followed, the depreciation allowance in respect of the trust property should be allowed - Decided in favour of assessee Carry forward of deficit - Held that:- There is no dispute that an identical issue was considered and decided by this Tribunal in favour of the assessee in the case of Dr. T.M.A Pai Foundation, Manipal [2010 (2) TMI 1156 - ITAT BANGALORE] the object of the religious and charitable trust can only be achieved by incurring expenditure and in order to incur that expend iture, the trust should have an income. So long as the expenditure incurred is on religious or charitable purposes, it is the expenditure properly incurred by the trust, and the income from out of which that expenditure is incurred, would not be liable to tax. The expenditure, if incurred in an earlier year is adjusted against the income of a later year, it has to be held that the trust had incurred expenditure on religious and charitable purposes from the income of the subsequent year, even though the actual expenditure was in the earlier years, if in the books of account of the trust such earlier expenditure had been set off against the income of the subsequent year. The expenditure that can be so adjusted can only be expenditure on religious and charitable purposes and no other. - Decided against revenue Revaluation of investments treated as income of the assessee - Held that:- Mere revaluation of asset would not increase income or receipt of the assessee, until and unless the said gain of revaluation is realised. Therefore, the gain on revaluation of the asset/investments without actual realisation cannot be treated as income of the assessee - Decided against revenue
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