https://www.taxtmi.com/caselaws?id=310922 The Karnataka HC upheld the assessee trust's claim for depreciation on assets acquired during the accounting year, despite the entire cost being claimed as application of income for charitable activities. The court ruled that trust income must be computed on commercial principles under section 11, allowing normal depreciation deductions from gross income, even when asset acquisition costs were treated as income application in the purchase year. The HC also permitted carrying forward losses for set-off against current year income, following precedent that expenses from earlier years adjusted against subsequent income constitute application of income for charitable purposes in the later year. en-us Tue, 14 Aug 2018 00:00:00 +0530 Sat, 25 Nov 2023 14:00:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310922 The Karnataka HC upheld the assessee trust's claim for depreciation on assets acquired during the accounting year, despite the entire cost being claimed as application of income for charitable activities. The court ruled that trust income must be computed on commercial principles under section 11, allowing normal depreciation deductions from gross income, even when asset acquisition costs were treated as income application in the purchase year. The HC also permitted carrying forward losses for set-off against current year income, following precedent that expenses from earlier years adjusted against subsequent income constitute application of income for charitable purposes in the later year. Case-Laws Income Tax Tue, 14 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310922