9911796707
TMI Blog2012 (8) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... wance of depreciation in the light of decision of the Supreme Court in the case of Escorts Ltd. & Another Vs. Union of India, 199 ITR 44. iii) The CIT(A) erred in holding that the decision of the Apex Court in Escorts Ltd., is not applicable to Trusts as the income is not required to be computed in terms of sec. 28 to 44 of the IT Act, but is required to be computed in accordance with section 11 to 13 of the Act. iv) The order of the ITAT in ITA No. 807 to 809/Hyd/10 in the case of Kamineni Educational Society, Hyderabad has not been accepted by the Department and u/s. 260A has been preferred before the Hon'ble AP High Court." 2. Briefly the facts of the case are that the assessee society filed its return of income for the year under con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Shrimad Vallabh Vishwa Dharma Sanstha [2006] [102 TTJ 653], it is clear that the decision of Hon'ble Apex Court in the case of CIT Vs. Escorts India Ltd., 199 ITR 44, appl ies to the deduction claimed u/s 35(2)(iv) while computing the business income. Obivously, therefore, the same is not applicable to trusts/societies, as their income is not required to be computed in terms of section 28 to 44 of the Act, but is required to be computed in accordance with section 11 to 13 of the Act. Though it is true that claiming depreciation, besides claiming the full cost of assets as application of income does prima facie look like a double claim of deduction and is unthinkable while computing the business income of any other person, the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Af ter hearing both the parties, we are of the opinion that similar issues were considered by this Tribunal vide order dated 03/09/2010 in ITA Nos. 807 to 809/H/2010 for the assessment years 2001- 02, 2003-04 and 2006-07 in assessee's own case wherein the Tribunal decided the issue of allowability of depreciation on the capital asset in favour of the assessee and observed that the judgment of the Hon'ble Supreme Court in the case of Escorts India Ltd. reported in 1999 ITR 43 is into applicable to the facts of the present case. Further, the Tribunal vide its order dated 03/12/2010 in ITA No. 1769/Hyd/2008 for the assessment year 2005- 06 in the case of M/s Pratima Educational Society, Hyderabad has taken similar view. 4. In view of the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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