“Section 10(6)(vi)”
The decision most relied on for Section 10(6)(vi) is CIT v. Rajasthan & Gujarati Charitable Foundation Poona (402 ITR 441), cited in 187 judgments on BharatTax.
Leading authorities on Section 10(6)(vi)
Depreciation is allowable as a deduction even if the expenditure for acquiring the capital asset was treated as application of income for charitable purposes. This does not constitute a double benefit.
An institution is not considered substantially financed by the government if only a small percentage of its total income, such as 6%, comes from government grants. The court applies this to determine eligibility for exemptions under Section 10(23C)(iiiab).
The term 'used' in the context of asset depreciation includes both active and passive use, meaning depreciation is allowable even if an asset is merely kept ready for use rather than actively employed.
Payments for sponsorship rights, such as title sponsorship or being an "Official Partner" of an event, are not considered royalty income for the use of trademarks or brand names under Section 9(1)(vi). Consequently, withholding tax obligations under Section 195 may not apply to such payments.
