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2013 (12) TMI 163 - AT - Income TaxDepreciation on capital expenditure - Double deduction or not - Held that:- Following CIT v Institute of Banking [2003 (7) TMI 52 - BOMBAY High Court] - The income of the trust is required to be computed under section 11 on commercial principles, without reference to the heads of the income specified under section 14 of the Act - As per the CBDT Circular No.5-P (LXX-6) issued dated 19th June, 1968 - The income of the trust is to be computed on the commercial basis i.e. as per normal accounting principles which clearly provide for deducting depreciation to arrive at income. The income so arrived at (after deducting the depreciation) is to be applied for charitable purpose. Capital expense is application of the income so determined. The application of the income so determined cannot be stated to be a deduction to arrive at the income. The depreciation is to be deducted to determine the income under section 11 of the Act and it is not an application of income - There is no double deduction as claimed by the DIT(E) - Decided in favour of assessee.
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