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2014 (12) TMI 145 - HC - Income TaxRejection of application for exemption u/s 10(23C)(iv) – 85% of Trust income used for the objects of trust or not - Held that:- The view of the Commissioner was rightly upheld by the Tribunal that the receipts of ₹ 162.53 crores and as against which expenditure amount spent is ₹ 138.82 including capital expenditure on purchase of equipments of ₹ 6,94,43,011/-, percentage of profit is 14.6%, which is lower than 15% permitted to be accumulated as per the Act, whereas 85% of Trust income had been applied and towards the object of the Trust. Claim of depreciation - Held that:- The income which has been spent for acquisition of assets would not mean that thereafter the depreciation on these assets in subsequent years cannot be taken into account - it is not that the Tribunal followed the course and unknown to law - the Tribunal was justified in allowing the depreciation on capital assets as deduction in computing the income – the order of the Tribunal is upheld – Decided against revenue.
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