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2016 (2) TMI 1307 - AT - Income TaxAssessment of trust - Depreciation claim of assessee trust - HELD THAT:- We are constrained to hold that the assessee would not be entitled to claim the benefit of depreciation for the purpose of section 11 - it is pertinent to mention that section 11 is a section with a legal fiction, wherein, when registration is granted to a charitable institution under section 12A of the Act, income from the trust is not brought into the ambit of tax on fulfilling certain conditions. Similarly, section 32 of the Act is also a provision with a legal fiction wherein notional amount is determined on the cost/WDV of the asset by applying the rate of depreciation specified in the Income Tax Rules and that is allowed as deduction while arriving at the business or profession income of the assessee. A provision with fiction cannot be superimposed on another provision with fiction for arriving at the income of the assessee. For the aforesaid reasons, we are of the considered view that the assessee will not be entitled to claim depreciation under section 32 of the Act for arriving at the income of the assessee under section 11. Accordingly, we hereby confirm the order passed by the learned Assessing Officer and set aside the order passed by the learned Commissioner of Income Tax (Appeals).
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