• Sec 11(1)(a) vs 32- CIT vs. Rajasthan And Gujarati Charitable Foundation Poona (SC)

Appeal no 7186 of 2014

Even if the entire expenditure incurred for acquisition of a capital asset is treated as application of income for charitable purposes u/s 11(1)(a) of the Act, the assessee is also entitled to depreciation u/s 32. The argument that the grant of depreciation amounts to giving double benefit to the assessee is not acceptable.

Sec 11(6) which bars depreciation on expenditure applied for charitable purposes is prospective and applies only from AY 2015-16.