Case Law Details
DCIT Vs Vidya Vikas Education Trust (ITAT Mumbai)
ITAT Mumbai held that depreciation cannot be disallowed as application of income under section 11(6) of the Income Tax Act when the assessee has not claimed purchase of asset as application of income in any of the previous years.
Facts-
The assessee is a Society involved in running of educational institution, duly registered u/s. 12A with the office of CIT(E). Assessee filed its return u/s. 1394 A (applicable to Charitable Trust/Society) declaring Nil income. Return was filed along with Audit Report in Form No. 10B, Income & Expenditure A/c, Receipt & Payment A/c and Balance-sheet. The case was selected for scrutiny u/s. 143(2) of the Act and a questionnaire was also issued to examine the matter.
AO observed that assessee has claimed depreciation amounting to Rs. 6,42,68,734/-. AO again issued a show-cause to the assessee for disallowing this depreciation by virtue of section 11(6) of the Act inserted w.e.f. A.Y. 2015-16.
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