Case Law Details
Hon’ble ITAT Delhi has held in the case of ITO(E) Vs. S.D.College Society (Lahore) that where the capital expenditure has been treated to have been applied for the object of the trust, allowance of deduction on account of depreciation will not amount to double deduction?
Facts of the case
In the course of assessment proceedings, the assessing officer noticed that assessee had claimed an amount of Rs. 58,65,877/- towards depreciation on fixed assets.
Further, the assessee had also claimed investment in fixed assets as an application of income. The assessing officer referred to the decision of the Tribunal in the case of Parkash Education Society wherein, inter alia, it was held as under:
“In a case where the capital expenditure has been treated to have been applied for the object of the trust, allowance of deduction on account of depreciation will amount to double deduction”.
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