TMI Blog2010 (7) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... questions of law have been proposed:- i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that depreciation was allowable on the capital assets, when deduction for capital expenditure incurred for acquisition of these capital assets has already been allowed as application on income of the trust? ii) Whether the learned ITAT's decision to allow double deduction on depreciation when capital expenditure on the asset has already been allowed is justified in the light of the Apex Court's decision in Escorts India Ltd. Vs. UOI (199) ITR 43 to the effect that in the absence of clear statutory indication to the contrary, the statute should not be read as to per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 30% of the market fee has to be paid to the said Board as a statutory obligation under the Agriculture Marketing Board Act and, therefore, it is not application of income, but it is sharing of income b y an overriding title as per the Act by which the Market Committee is governed? 3. The Assessee is a Market Committee and is registered under Section 12AA of the Act as a charitable institution. It has been created under the Punjab Agricultural Produce Markets Act, 1961 for regulating marketing of agricultural produce. The Assessing Officer rejected the claim of the Assessee with regard to depreciation and for deduction claimed in respect of contribution made by the Assessee to its apex body in accordance with statutory requirements. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11(1) of the Act only refers to exemption of income of previous year and, therefore, there cannot be any question of adjustment of deficit of excess expenditure of earlier years. The income sought to be exempted must have been applied in the year in question and not earlier. 7. We are unable to accept the submission. 8. Exclusion of income from total income under Section 11 of the Act is to the extent of its application for charitable purposes. Adjustment against excess expenditure of an earlier year is also application of income under the said provision. In CIT v. Maharana of Mewar Charitable Foundation [1987] 164 ITR 439 , it was held that it was not necessary that the income should be applied in the year in which it has arise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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