https://www.taxtmi.com/caselaws?id=458519 The ITAT Mumbai ruled in favor of a trust on two key issues. First, the tribunal held that a trust can claim depreciation on assets even if their cost was previously allowed as application of income under section 11, rejecting the AO's double deduction argument. Second, regarding the trust's pharmacy operations, the tribunal determined that running a pharmacy store within a hospital constitutes an integral part of charitable activities rather than a separate business under section 11(4A). Following Bombay HC precedent in Baun Foundation Trust, the tribunal found the pharmacy was incidental to the hospital's dominant charitable purpose, with profits utilized for hospital operations, thus qualifying for tax exemption. en-us Wed, 15 Jun 2016 00:00:00 +0530 Tue, 05 Nov 2024 07:35:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458519 The ITAT Mumbai ruled in favor of a trust on two key issues. First, the tribunal held that a trust can claim depreciation on assets even if their cost was previously allowed as application of income under section 11, rejecting the AO's double deduction argument. Second, regarding the trust's pharmacy operations, the tribunal determined that running a pharmacy store within a hospital constitutes an integral part of charitable activities rather than a separate business under section 11(4A). Following Bombay HC precedent in Baun Foundation Trust, the tribunal found the pharmacy was incidental to the hospital's dominant charitable purpose, with profits utilized for hospital operations, thus qualifying for tax exemption. Case-Laws Income Tax Wed, 15 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458519