Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 626 - AT - Income TaxAllowability of depreciation as capital expenses - Entire cost of capital expenditure already allowed as deduction u/s 11 of the Act Revenue was of the view that double deduction is not allowable and exemption is allowed to the assessee in respect of investment in capital assets u/s 11 by holding that the same is application of income for charitable purposes, allowing depreciation on those assets amounts to double deduction - Held that:- The stand of the Revenue is not correct because allowing exemption u/s 11 is not equal to allowing deduction - Allowing exemption means that the income is not liable to tax but the income remains the same and it does not get reduced, although such income is not taxable because of the operation of section 11(1) of the Act - exemption is allowed at the time of acquisition of assets and depreciation is allowed at the time of user of assets, it does not amount to double deduction Relying upon CIT vs. Society of Sisters of St. Anne [1983 (8) TMI 44 - KARNATAKA High Court] - income of the assessee trust has to be computed on commercial principle after allowing all deductions including depreciation thus, there is no reason to interfere in the order of the CIT(A) Decided against Revenue.
|