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2015 (11) TMI 1863 - AT - Income TaxExemption u/s 11 - assessee had not carried on any activity of charitable nature as contemplated under the trust deed - assessee - trust engaged running the business of printing a newspaper - depreciation claim of assessee trust - HELD THAT:- As relying on AL-MADEENA CHARITABLE TRUST. VERSUS ASSISTANT COMMISSIONER OF INCOME-TAX [1999 (11) TMI 104 - ITAT COCHIN] held that when an assessee had not carried on any activity of charitable nature as contemplated under the trust deed except running the business of printing a newspaper, the assessee cannot be considered as carrying on charitable activity so as to grant exemption u/s.11 of the Act. In view of the binding precedent relied on by the ld. DR, we are of the opinion that the assessee is not carrying on any charitable activity and cannot be granted exemption u/s.11 of the Act. However, we have to make it clear that the claim of depreciation to be granted on written down value of the assets. In other words, if the assessee has already claimed capital expenditure on acquisition of assets as application of income in earlier years and the value of the assets on which depreciation claimed has been fully allowed as expenditure or application in the earlier years that cannot be any claim of depreciation once again. The present claim of depreciation cannot be a double deduction over and above the fully value of the assets, if it was granted as application of income in earlier years. With these observations, we allow the Revenue’s appeal.
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