TMI Blog2018 (12) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... rmissible in law having regard to the provisions of section 11(6) of the Act which prohibits such deduction. We find that the Hon’ble Supreme Court in the case of Rajasthan and Gujarati Charitable foundation Poona [2017 (12) TMI 1067 - SUPREME COURT] has held that even if the entire expenditure incurred for acquisition of capital assets is treated as application of income for charitable purpose under section 11(1)(a) of the Act, the assessee would continue enjoy also the benefit depreciation under section 32 of the Act. Hon’ble Supreme Court observed that the argument that the grant of depreciation amounts to giving double benefit to the assessee is not acceptable. Hon’ble Supreme Court further held that specific provisions of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,830/-. Assessment year involved is 2011-12. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) of the Act was issued and served upon the assessee. During the assessment proceedings, the AO noticed that the assessee has shown gross total income at ₹ 13,44,83,078/- towards objects of the Trust and gross receipts to the tune of ₹ 12,66,22,248/-. The AO noticed that the assessee has claimed depreciation amounting to ₹ 2,19,24,966/- as deduction under section 11 of the Act, in addition to claim of capital expenditure for acquisition of fixed assets as application of income. The AO was of the view that since all the expenditure of capital nature has been treated as application of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of section 11(6) of the Act which prohibits such deduction. We find that the Hon ble Supreme Court in the case of Rajasthan and Gujarati Charitable foundation Poona, 89 taxmann.com 127 (SC) has held that even if the entire expenditure incurred for acquisition of capital assets is treated as application of income for charitable purpose under section 11(1)(a) of the Act, the assessee would continue enjoy also the benefit depreciation under section 32 of the Act. Hon ble Supreme Court observed that the argument that the grant of depreciation amounts to giving double benefit to the assessee is not acceptable. Hon ble Supreme Court further held that specific provisions of section 11(6) which bars claim of depreciation of expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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