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2013 (12) TMI 889 - AT - Income TaxDepreciation on assets Application of funds Held that:- Following Karnataka Reddy Janasangha in [2013 (12) TMI 163 - ITAT BANGALORE] - 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 As per Circular No.5-P (LXX-6) dated 19th June, 1968issued by CBDT - The income of the trust is to be computed on the commercial basis - The normal accounting principles clearly provide for deducting depreciation to arrive at income. The income so arrived after deducting the depreciation is to be applied for charitable purpose. Capital expense is application of the income so determined - There is no double deduction as claimed by the DIT(E) in his order Depreciation is allowed on cost of assets which have been fully allowed as application of income u/s 11 Decided in favour of assessee.
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