Section 11, 12, 32 of Income Tax Act, 1961—Charitable activity—In the present case, as in the cited decision, a charitable institution acquired medical equipments with surplus funds available and the expenditure was treated as application of income of the charitable trust for charitable purposes. A claim of depreciation thereafter would not sustain going by the cited decision. The decision challenged before the Hon'ble Supreme Court in Civil Appeal No. 1591/2013 was affirmed.

Held that—It is specifically noticed that Section 11(6) of the Act has only prospective effect from the assessment year 2015-16. The subject assessment years in the present appeals being prior to the assessment year 2015-16, we have to allow the appeals answering the questions of law in favor of the assessee and against the Revenue. [THE CHOICE FOUNDATION VERSUS THE DEPUTY COMMISSIONER OF INCOME TAX (EXEM) RANGE-4, KERALA] [2018] [7] [ITCD Online] [76] [KERALA HIGH COURT]