CIT vs. Rajasthan And Gujarati Charitable Foundation Poona (Supreme Court) - 22 Dec 2017
Some of the important references of the case (for easy reference only)-
1- The first question which requires
consideration by this Court is: whether depreciation
was allowable on the assets, the cost of which has
been fully allowed as application of income under
section 11 in the past years,
2- That,
section 32(1) of the Act provides for depreciation in
respect of building, plant and machinery owned by the
assessee and used for business purposes.
3- section 32 of the Income
Tax Act providing for depreciation for computation of
income derived from business or profession is not
applicable
4- It may also be mentioned at this stage that the
legislature, realising that there was no specific provision
in this behalf in the Income Tax Act, has made amendment in
Section 11(6) of the Act vide Finance Act No. 2/2014 which
became effective from the Assessment Year 2015-2016.
The
Delhi High Court has taken the view and rightly so, that the
said amendment is prospective in nature, It also follows that once assessee is allowed
depreciation, he shall be entitled to carry forward the
depreciation as well
For reading full text of the case please refer link - http://itatonline.org/archives/cit-vs-rajasthan-and-gujarati-charitable-foundation-poona-supreme-court-s-111a-vs-32-even-if-the-entire-expenditure-incurred-for-acquisition-of-a-capital-asset-is-treated-as-application-of-inco/rajasthan-charitable-foundation-depreciation/
******************************************************************************************************************************************************************
2-
No comments:
Post a Comment