Depreciationof fixed assets of a charitable trust

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harsh (Querist)
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09 October 2012 hi all,
Can depreciation of fixed assets of a charitable trust be disallowed on the basis of utilization of funds for the 85 % criteria??
if yes, explain.

Thank You

CA Navin Jain

CA Navin Jain (Expert)
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09 October 2012 depreciation of fixeed assets is considered as an expenses while calaculation of utilization of funds.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 October 2012 Depreciation is disallowed in the case of
Lissie Medical Institutions Vs.CIT ,decision of Kerala High Court dated 17/02/2012, wherein it was observed that dual deduction for cost of the asset and depreciation can't be availed.

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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09 October 2012 Depreciation & Fixed Asset Cost Both are Allowed in 85% Criteria.
There are Some Cases in Which Hearing is in favour of Some Time Assessee & Some Time in Favour of Department.
But The Conclusion & Last Juridictional Judgement in Favour of assessee Only.

One Case I remember is
Case law:-
Krishi Upaj Mandi Samiti
ITAT JAIPUR BENCH ‘A’

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