TMI Blog2012 (8) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... . (1992 (10) TMI 1 - SUPREME COURT) distinguished. - IT APPEAL NOS. 89 & 90 (MDS.) OF 2009 AND 681 & 682 (MDS.) OF 2010 - - - Dated:- 25-3-2011 - HARI OM MARATHA, ABRAHAM P. GEORGE, JJ. V.D. Gopal for the Appellant. Tapas Kumar Dutta for the Respondent. ORDER Abraham P. George, Accountant Member In these appeals filed by the assessee, for the impugned assessment years, a common ground has been taken. The issue raised by the assessee through this common ground is that the CIT (Appeals) as well as the A.O. fell in error in not allowing the claim of depreciation for the respective assessment years, for a reason that cost of acquisition of the capital asset on which the claim of depreciation was made, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to claim depreciation thereon. 4. Per contra, the learned D.R. supported the orders of the authorities below. According to him, the claim of the assessee if allowed, would result in double deduction. 5. We have perused the orders and heard the rival contentions. For the purpose of determining the income of a Trust eligible for exemption under Section 11 of the Act, income arising from property held under Trust, constitutes the income of the Trust. It will mean income from property, business, dividends, interest on securities or other interest. In other words, the income for the purpose of Section 11 of the Act is the income as per the accounts of the Trust. It means, income in the commercial sense, without reference to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication of income for religious or charitable purposes. Once again in CIT v. Institute of Banking Personnel Selection (IBPS) [2003] 264 ITR 110/131 Taxman 386, Hon'ble Bombay High Court held that depreciation should be allowed even on assets, the cost of which had been allowed as exempt under Section 11 in the preceding years. Their Lordship also held that depreciation should be allowed even on assets received on transfer from another charitable Trust on which no cost was borne by the assessee Trust. Other High Courts which have also taken the view that depreciation is deductible are Hon'ble Karnataka High Court in the case of CIT v. Society of the Sisters of St. Anne [1984] 146 ITR 28/16 Taxman 400 and Hon'ble Madhya P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be drawn as in the case of Escorts Ltd. ( supra ) both were deductions under the head 'business income' whereas in case of a charitable Trust depreciation is a deduction to arrive at income and capital expenditure is application of such income. The aforesaid decision in the case of Escorts Ltd. ( supra ) cannot be applied to determine taxable income for a Trust as the provisions to determine taxable income of the Trust are totally different and normal provisions for computing income under five heads cannot be applied. Thus the assessee is eligible for claiming depreciation for all these assessment years. The orders of the authorities below are set aside and the A.O. is directed to allow the claim of depreciation. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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