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2016 (7) TMI 955 - AT - Income TaxClaim of depreciation denied to assessee trust - Held that:- We find that Hon’ble jurisdictional High Court in the case of CIT vs Institute of Banking Personal (2003 (7) TMI 52 - BOMBAY High Court) and CIT vs Plot Swetamber Murti Pujak Mandal (1993 (11) TMI 17 - GUJARAT High Court ) decided the issue in favour of the assessee. Income of a charitable trust derived from building, plant and machinery and furniture was liable to be computed in a normal commercial manner although the trust may not be carrying on any business and the assets in respect whereof depreciation is claimed may not be business assets In all such cases, section 32 of the Income-tax Act providing for depreciation for computation of income derived from business or profession is not applicable However, the income of the trust is required to be computed under section 11 on commercial principles after providing for allowance for normal depreciation and deduction thereof from gross income of the trust - Decided in favour of assessee.
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