TMI Blog2014 (5) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... to Ms. Meenakshi Sundararajan is covered by the said exemption. - Exemption allowed - Decided in favor of assessee. Claim of depreciation - double benefit - Held that:- In fact, there is no question of double benefit. An assessee is getting the benefit of application of funds for charitable purposes from the income computed according to normal accounting practices. Accordingly, it is to be seen that there is no clash between providing depreciation allowance and recognizing the application of funds for charitable purposes. Decided in favor of assessee. - ITA No. 318/Mds/2014 - - - Dated:- 27-5-2014 - Dr. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER For the Appellant- Shri R. Vijayaraghavan, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment was carried in first appeal. The Commissioner of Income-tax(Appeals) dismissed the appeal and confirmed the assessment. 6. The assessee is aggrieved and, therefore, the second appeal before us. 7. First, let us consider, whether the assessee is eligible for deduction under sec.11 or not, in view of payment of `1,13,400/- made to Ms. Meenakshi Sundararajan. 8. It is the case of the assessee that the lower authorities have erred in holding that sec.13(1)(c), 13(2) and 13(3) are attracted in respect of honorarium, ex-gratia and medical expenses of ` 1,13,400/- paid to Ms. Meenakshi Sundararajan, who is the wife of the founder of the trust. It is the case of the assessee that the lower authorities have overlooked the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber, 2013 in ITA Nos.1436 2159/Mds/2012, wherein the Tribunal has held as follows: Computing of income for arriving at normal income of the assessee and examining the application of funds for charitable purposes are two different segments. Depreciation is allowed in the first segment, while computing the income of the assessee as similar to any other assessees. It is from that income, the assessee is supposed to apply funds for charitable purposes. The examination of this aspect is the second segment. In the second segment, money spent for acquiring an asset is treated as application of funds for charitable purposes. In fact the question of application considered in the second segment is entirely different. In fact, there is no questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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