TMI Blog2014 (7) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... iable to tax but the income remains the same and it does not get reduced, although such income is not taxable because of the operation of section 11(1) of the Act - exemption is allowed at the time of acquisition of assets and depreciation is allowed at the time of user of assets, it does not amount to double deduction – Relying upon CIT vs. Society of Sisters of St. Anne [1983 (8) TMI 44 - KARNATAKA High Court] - income of the assessee trust has to be computed on commercial principle after allowing all deductions including depreciation – thus, there is no reason to interfere in the order of the CIT(A) – Decided against Revenue. - ITA No. 117/LKW/2014 - - - Dated:- 13-5-2014 - Shri Sunil Kumar Yadav And Shri A. K. Garodia,JJ. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to do so. 3. Learned D.R. of the Revenue supported the assessment order. He also placed reliance on the judgment of Hon'ble Apex Court rendered in the case of Escorts Ltd. Vs Union of India [1993] 199 ITR 43 (SC). 4. As against this, learned A.R. of the assessee supported the order of CIT(A). He also placed reliance on various judicial pronouncements as noted under: (i) CIT vs. Institute of Banking Personnel Selection (IBPS) [2003] 131 Taxman 386 (Bom) (ii) CIT vs. Society of Sisters of St. Anne [1984] 146 ITR 28 (Kar.) (iii) CIT vs. Raipur Pallorina Society [1989] 180 ITR 579 (MP) (iv) CIT vs. Sheth Manilaal Ranchhoddas Vishram Bhavan Trust [1992] 198 ITR 598 (Guj) (v) CIT vs. Manav Mangal Society [2010] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 11 is not equal to allowing deduction. Allowing exemption means that the income is not liable to tax but the income remains the same and it does not get reduced, although such income is not taxable because of the operation of section 11(1) of the Act. Since in the present case, exemption is allowed at the time of acquisition of assets and depreciation is allowed at the time of user of assets, it does not amount to double deduction. Various judgments cited by learned A.R. of the assessee are supporting the case of the assessee because it was held in these judgments that income of the assessee trust has to be computed on commercial principle after allowing all deductions including depreciation. We, therefore, decline to interfere in the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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