2010 (7) TMI 377

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....by the Revenue under section 260A of the Income-tax Act, 1961 (for short, "the Act") against the order dated June 2, 2009 of the Income-tax Appellate Tribunal, New Delhi in I. T. A. No. 3182/Del/2008 for the assessment year 2006-07, proposing to raise the following substantial question of law :   "Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate ....

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...., the Commissioner of Income-tax (Appeals) accepted the appeal of the assessee. It was held that deduction for computing income to preserve corpus of the trust was permissible and did not amount to double benefit. This view has been upheld by the Tribunal with the following observations:   "3. We have given careful thought to the submissions made before us. As already noted, the asses....

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..... Learned counsel for the Revenue submits that in view of the judgment of the hon'ble Supreme Court in Escorts Ltd. v. UOI [1993] 199 ITR 43, the assessee could not claim deduction when its income was exempt, as it will amount to getting double benefit.   5. We are unable to accept the submission.   6. The matter was discussed in our recent judgment dated July 5, 2010 in I.T. A. No....

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....age 20 supra) :   "9. In the present case, the assessee is not claiming double deduction on account of depreciation as has been suggested by learned counsel for the Revenue. 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 purposes of the trust.....