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Depreciation u/s.11

s nara vara prasad (ACCOUNTANT) (20 Points)

29 October 2016

whether depreciation can be allowed when we claim exemption U/s.11 for the AY 2014-15

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 29 October 2016

Not allowed now. Read::

""The following sub-sections (6) and (7) shall be inserted after sub-section (5) of section 11 by the Finance (No. 2) Act, 2014, w.e.f. 1-4-2015:

(6) In this section where any income is required to be applied or accumulated or set apart for application, then, for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this section in the same or any other previous year...................""

As such the amendment is from A Y 2015-16 and onwards, AO may disallow for AY 2014-15, taking it as retrospective.