“Section 11(1)(d)(iii)”
The decision most relied on for Section 11(1)(d)(iii) is Income Tax-III, Pune v. Rajasthan & Gujarati Charitable Foundation Poona (89 Taxmann.com 127), cited in 130 judgments on BharatTax.
Leading authorities on Section 11(1)(d)(iii)
The claim of depreciation under Section 32 of the Income Tax Act for assets used by charitable trusts is permissible, affirming the Bombay High Court's view that such a claim does not amount to a 'double benefit'.
Charitable institutions are entitled to claim depreciation on assets even when the cost of acquisition has already been treated as an application of income for exemption purposes, as this does not constitute a double deduction.
For income to be exempt under Section 11(1)(a) of the Income Tax Act, it must be 'actually applied' for charitable or religious purposes; notional expenditure does not qualify. The burden of proving exemption lies with the assessee.
A charitable trust cannot claim depreciation on an asset if its entire cost has already been allowed as a deduction by way of application of income.
An assessee must first file preliminary objections with the Assessing Officer regarding a reassessment notice. The Assessing Officer must decide these objections by passing a speaking order before the assessee can approach the High Court.
The terms "trade, commerce, or business" in Section 2(15) of the Income Tax Act imply an activity undertaken with the objective of making or earning profit. A profit motive is a critical factor in determining if an activity constitutes business, trade, or commerce.
