Case Law Details
Depreciation on the capital assets was allowable even when capital expenditure on the acquisition of the corresponding assets had already been allowed as ‘application of income’for the purpose of allowing the exemption under s 11.
CIT Vs Market Committee, Tohona (Punjab and Haryana High Court)– Whether on the facts and in the circumstances of the case, the Honourable ITAT is justified in allowing depreciation on the capital assets even when capital expenditure on acquisition of the corresponding assets had already been allowed as ‘application of income’ for the purpose of allowing exemption under section 11 of the income-tax Act and as such further allowing of depreciation of these capital assets will amount to double deduction for the same expenditure?
Whether allowing of depreciation on the capital assets by Honourable ITAT is justified in the light of the Honourable Apex Court decision in Escorts India Ltd. (199 ITR 43), wherein it has been held that in the absence of clear statutory indication to the contrary, the statute should not be read as to permit an assessee two deductions on the same expenditure?
CIT Vs Market Committee, Tohona
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