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2011 (7) TMI 955 - HC - Income TaxDepreciation - AO also denied the claim of the assessee to carry forward deficit in the application of funds - Held that: If depreciation is not allowed as a necessary deduction in computing the income of a charitable trust, then there would be no way to preserve the corpus of the trust. A charitable trust is, therefore, entitled to depreciation in respect of the assets owned by it Regarding carry forward - Held that: in view of section 11(1)(a) of the Act it cannot be said that the expenditure incurred in the earlier year cannot be met out of the income of the subsequent year and utilization of such income for meeting the expenditure of the earlier year would not amount to such income being applied for charitable or religious purposes - In the case of CIT v. Maharana of Mewar Charitable Foundation [1986 (7) TMI 56 - RAJASTHAN High Court]- Decided in favor of the assessee
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