In Brief
These appeals by the Income Tax Department challenge High Court orders allowing charitable institutions to claim depreciation on assets whose acquisition costs were previously deducted as application of income under Section 11(1)(a). The Supreme Court held that depreciation can be claimed in subsequent years on such assets when computing charitable income on commercial principles, as the two treatments occur in different assessment years and under separate provisions. This does not constitute double benefit. The Court affirmed the approach of most High Courts, noting the Legislature subsequently amended Section 11(6) to clarify the position prospectively from 2015-16. Appeals dismissed; carried-forward depreciation is permissible.
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