TMI Blog2011 (6) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... M P. GEORGE, ACCOUNTANT MEMBER : In both these appeals, grievance of the assessee that allowance of depreciation was not considered in working out the utilization for the purpose of computing its income, though the assessee was registered under Section 12AA of Income-tax Act, 1961 (in short the Act ). As per the assessee, depreciation of assets had to be considered as utilization of income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction. However, ld. CIT(Appeals) was not impressed. According to him, decisions of Hon'ble Apex Court in the case of Escorts Ltd. v. Union of India (199 ITR 43) and in the case of CIT v. Hico Products P Ltd. (247 ITR 797) were in favour of Revenue. Hence, he held that the A.O. was correct in disallowing the depreciation claim of the assessee. 4. Now before us, learned A.R., strongly assaili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The income of the assessee being exempt, the assessee is only claiming that depreciation should be reduced from the income for determining the percentage of funds which have to be applied for the purpose of the trust. There is no double deduction claimed by the assessee as canvassed by the Revenue. The judgement of the Hon'ble Supreme Court in Escorts Ltd. [1993] 199 ITR 43 is distinguishab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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