TaxTMI 
TaxTMI 
2010 (7) TMI 374
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....her 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 of income of the trust ?" "2. Whether the learned Income-tax Appellate Tribunal'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 Ltd. v. UOI [1993] 199 ITR 43 (SC) to the effect that in the absence of clear statutory indication to the con- trary, the statute should not be read as to permit an assessee to dedu....
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....ue in favour of the assessee. He relied on the judgments in CIT v. Sheth Manilal Ranchhoddas Vishram Bhavan Trust [1992] 198 ITR 598 (Guj) and CIT v. Institute of Banking Personnel Selection (IBPS) [2003] 264 ITR 110 (Bom) ; [2003] 131 Taxman 386 (Bom), which have been followed by the Tribunal in its main order which has been impugned in connected I. T. A. No. 151 of 2010 and judgments in CIT v. Rao Bahadur Calavala Cunnan Chetty Charities [1982] 135 ITR 485 (Mad), CIT v. Society of the Sisters of St. Anne [1984] 146 ITR 28 (Karn) and CIT v. Raipur Pallottine Society [1989] 180 ITR 579 (MP). 6. We have considered the rival submissions. The Madras High Court in Rao Bahadur Calavala Cunnan Chetty Charities' case [1982] 135 ITR 485 (....
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....e rule of accumulation to the extent of Rs. 10,000 or 25 per cent. of the income, whichever is higher. . . . In fact wherever the statute contemplated the income being computed in the manner set out in the provisions of the Act, appropriate words are used. For instance, in section 80E, which was considered by the Supreme Court in Cambay Electric Supply Industrial Co. Ltd. v. CIT [1978] 113 ITR 84, after the expression `total income' the following words are added in brackets : `as computed in accordance with the other provisions of this Act'. This emphasises that wherever Parliament considered that the computation should be in accordance with the provisions of the Act, it introduced the concept by using appropriate language. In the....
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....s followed by the Madhya Pradesh High Court in CIT v. Raipur Pallottine Society [1989] 180 ITR 579. Similar view was taken by the Gujarat High Court in CIT v. Seth Manilal Ranchhoddas Vishram Bhawan Trust [1992] 198 ITR 598 by relying upon the aforesaid decisions. We are in respectful agreement with the view taken by theMadras, Madhya Pradesh, Karnataka,Gujaratand Bombay High Courts referred to above. No contrary view has been brought to our notice. 8. In all fairness to the learned counsel for the Revenue, reference is made to the judgment of the hon'ble apex court in Escorts Limited's case [1993] 199 ITR 43 (SC), on which reliance has been placed by the learned counsel for the Revenue. The hon'ble Supreme Court in that case was ....