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2017 (5) TMI 977 - AT - Income TaxDisallowance of claim of depreciation of the assessee-trust - when the capital expenditure itself was allowed as application of income then the allowance of depreciation would amount to double deduction - Held that:- CIT (Appeals) has correctly allowed the claim of the assessee by following the decision in the case of CIT Vs. Society of Sisters of St. Anne [1983 (8) TMI 44 - KARNATAKA High Court ]. Also see DCIT Vs. Manipal Academy of Higher Education [2015 (12) TMI 1365 - ITAT BANGALORE ] wherein held if the mercantile system is followed, the depreciation allowance in respect of the trust property should be allowed - Decided in favour of assessee Carry forward of excess application of income under Section 11(1)(a) - Held that:- CIT (Appeals) has decided this issue correctly by following the decisions of this Tribunal including the decision in the case of CIT Vs. Manipal Academy of Higher Education [2015 (12) TMI 1365 - ITAT BANGALORE ] as held The expenditure, if incurred in an earlier year is adjusted against the income of a later year, it has to be held that the trust had incurred expenditure on religious and charitable purposes from the income of the subsequent year, even though the actual expenditure was in the earlier years, if in the books of account of the trust such earlier expenditure had been set off against the income of the subsequent year. The expenditure that can be so adjusted can only be expenditure on religious and charitable purposes and no other. Also see Deputy Director of Income-tax (E) , Circle -17 (1) , Bangalore Versus Karnataka Food and Civil Supplies Ltd [2016 (1) TMI 396 - ITAT BANGALORE] - Decided against revenue
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