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2017 (8) TMI 244 - HC - Income TaxDeductible / Exempted income u/s 10(29) - depreciation to be excluded from the income or not - CIT(A) allowed the computation after excluding depreciation as part of the expenditure and taking gross receipts from warehousing and Inland Container Depot/ Container Freight Station (‘ICD/CFS’) - Held that:- As evident form the supreme court case in Nectar Beverages Pvt. Ltd. [2009 (7) TMI 5 - SUPREME COURT] while explaining the rationale behind insertion of Section 41(2) of the Act, delved into the aspect as to what was the nature of ‘depreciation’. It has been emphasized by the Supreme Court that ‘depreciation’, by its very nature and as used in Section 41(1) of the Act, is neither loss, nor expenditure, nor trading liability’. In other words, irrespective of the provision in which the word ‘depreciation’ is used, owing to the very nature of the word, it is not a loss or an expenditure or a trading liability. The Court is satisfied that neither the CIT (A) nor the ITAT has committed any legal error in concluding that for the purposes of Section 10(29) of the Act ‘depreciation’ is not an expense but allowance. No substantial question of law
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