TMI Blog1992 (2) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the following two questions to this court under section 256(1) of the Income-tax Act, 1961 : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that, while computing income under section 11(1)(a) of the Income-tax Act, 1961, depreciation has to be allowed ? 2. Whether the Tribunal was right in law in holding that, having regard to the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Commissioner held otherwise. The Revenue then went to the Tribunal. The Tribunal dismissed the appeal. Same thing happened for the assessment year 1972-73 also. After both the appeals, were dismissed, the Revenue applied to the Tribunal for raising the above two questions and referring the same to this Court. What is urged by learned counsel appearing for the Revenue is that sections 22 to 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in order to maintain correct accounts, the High Court held that the amount of depreciation debited to the accounts of the charitable institution has to be deducted to arrive at the income available for application to charitable and religious purposes. Same view has been taken by the Madhya Pradesh High Court in CIT v. Raipur Pallottine Society [1989] 180 ITR 579. In CIT .v Rao Bahadur Calavala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferent categories or heads arises only for the purposes of ascertaining the total income for the purposes of charge. Those provisions cannot be introduced to find out what the income derived from the property held under trust to be excluded from the total income is, for the purpose of the exemptions under Chapter III. We are in respectful agreement with the view taken by the Karnataka, Madhya Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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