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2015 (11) TMI 1119 - AT - Income TaxClaim of depreciation - cost of the asset was allowed under section 11 - Held that:- as application income since the assessee is a charitable institution entitled for exemption under section 11. Therefore, the cost of the asset becomes nil. When the cost of the asset becomes nil, there is no question of allowing any depreciation. If the depreciation is allowed then it would amount to double deduction. The income of the charitable institution has to be computed on commercial principle in case the assessee is not claiming exemption under section 11 of the Act. The assessee can also claim depreciation in case the exemption under section 11 was denied by the Assessing Officer. Whatever may be the reasons, since the cost of the asset is nil as the cost was already allowed as application of income, this Tribunal is of the considered opinion that the assessee is not entitled for depreciation. Section 32 of the Act falls in Chapter IV under heading Computation of total income, however, section11 falls in Chapter III which provides for incomes which do not form part of the total income. Therefore, this Tribunal is of the considered opinion that the provisions of section 11 of the Act will override section 32. - Decided against assessee.
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