Section 10(23c)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2015 As per Finance Act 2014, new proviso has been inserted to section 10 (23C), which includes disallowance of depreciation if educational institution has incurred capital expenditure from the application of money. (effective 01/04/2015). Can anybody throw some light on this, whether application of money relates to 85% mandatory towards educational purposes or other 15%?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 April 2015 The query is not clear, however, it may be understood that the intention of the law has remained to avoid double claim. Once the cost of asset has been considered as application, depreciation charged on the same asset can not be claimed as application.
You can take this insertion as clarificatory in nature.