Held that when the application of income was more than the receipts of year, the excess application of income, i. e., expenditure in the hands of the assessee, could be carried forward to the succeeding year. Held, that the assessee was entitled to claim the depreciation as “plant and machinery” as the assessee was promoting public objects which were activities in the nature of trade, commerce or business but without commercial motive. (AY. 2015-16)
Dy. CIT (E) v. Ahmedabad Urban Development Authority (2023)105 ITR 24 (SN)(Ahd) (Trib)
S. 11 : Property held for charitable purposes-Income applied to charitable purposes more than receipts of year-Excess applied can be carried forward to succeeding year-Plant and machinery-Depreciation is allowed.[S. 32]