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2014 (5) TMI 1173 - AT - Income TaxExemption u/s 11 - disallowance of depreciation - violation of provisions of sec. 13(1)(c) by making payment to the wife (Ms. Meenakshi Sundararajan) of founder of the trust - Held that - In the present case the assessee trust has been created on 1.2.1961. This is before the commencement of the Income-tax Act 1961. As per Clauses 36 to 41 of the Memorandum of Association of the assessee trust Ms. Meenakshi Sundararajan is entitled for honorarium in rendering services to the benefits of the assessee society. Therefore as rightly argued by the learned counsel the payment made to Ms. Meenakshi Sundararajan is covered by the said exemption. - Exemption allowed - Decided in favor of assessee. Claim of depreciation - double benefit - Held that - In fact there is no question of double benefit. An assessee is getting the benefit of application of funds for charitable purposes from the income computed according to normal accounting practices. Accordingly it is to be seen that there is no clash between providing depreciation allowance and recognizing the application of funds for charitable purposes. Decided in favor of assessee.
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