https://www.taxtmi.com/caselaws?id=179442 A duly registered charitable trust under section 11 cannot be denied exemption merely because it took an unsecured loan from a managing trustee without prior approval under the Bombay Public Trusts Act, where the borrowing was not contrary to the trust deed or objects and no statutory ground for cancellation existed. Income of a charitable trust is computed on commercial principles, so depreciation remains allowable even if the asset cost was earlier treated as application of income. Repayment of a loan taken to advance charitable objects is also treated as application of income and does not amount to an impermissible double deduction. en-us Fri, 10 Aug 2012 00:00:00 +0530 Mon, 04 Sep 2017 12:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179442 A duly registered charitable trust under section 11 cannot be denied exemption merely because it took an unsecured loan from a managing trustee without prior approval under the Bombay Public Trusts Act, where the borrowing was not contrary to the trust deed or objects and no statutory ground for cancellation existed. Income of a charitable trust is computed on commercial principles, so depreciation remains allowable even if the asset cost was earlier treated as application of income. Repayment of a loan taken to advance charitable objects is also treated as application of income and does not amount to an impermissible double deduction. Case-Laws Income Tax Fri, 10 Aug 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179442