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2023 (2) TMI 1059 - AT - Income TaxExemption u/s 11 - depreciation from the assets while computing its income - Scope of Section 11(6) inserted by Finance (No.2) Act, 2014 denying depreciation while computing income of charitable trust - HELD THAT:- It is not the case of the assessee before us that the assets acquired by the assessee without claiming the application of income in respect of such asset for which the assessee is claiming the depreciation. In our view, once the assessee has claimed the application of income in acquiring the assets either in the current year or in the previous year, then the assessee is not entitled to claim depreciation on such assets. Hence, we do not find any merits in the contentions raised by the assessee and the order passed by the ld.CIT(A) giving the reasons, is in accordance with the bare provision of the Act and hence, the present appeal is devoid of any merits and accordingly, the appeal of the assessee is dismissed. So far as the judgments relied upon by the assessee are concerned, all those decisions are prior to the amendment by virtue of section 11(6) of the Act was inserted in the Act. Various Hon’ble High Courts including decision of Sri Sri Adichunchunagiri Shikshana Trust 2016 (7) TMI 1046 - KARNATAKA HIGH COURT] , Medical Trust of the Seventh Day Adventists [2017 (8) TMI 931 - MADRAS HIGH COURT] and Seth Anandram Jaipuria Edu. Society Cantonment [2017 (3) TMI 896 - ALLAHABAD HIGH COURT] have held that, Section 11(6) inserted by Finance (No.2) Act, 2014 denying depreciation while computing income of charitable trust, is prospective in nature and operates with effect from 1-4-2015. The assessment for the year under consideration is 2017-18 and therefore, section 11(6) is squarely applicable to the facts of the case and the Revenue is justified in denying the depreciation to the assessee on the assets purchased prior to the previous year relevant to the assessment year under consideration. Appeal of the assessee is dismissed.
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