2010 (8) TMI 544

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.... Radhika Suri for the Respondent. JUDGMENT Adarsh Kumar Goel, J. - This order will dispose of ITA No. 346 of 2008, I.T.A. No. 318 of 2009 and I.T.A. No. 155 of 2010, as common question of law is involved. 2. I.T.A. No. 346 has been preferred by the revenue under section 260A of the Income-tax Act, 1961 (for short, "the Act") against the order dated 28-9-2007 in I.T.A. No. 140/CHD/2007 ....

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....placed on judgment of the Hon'ble Supreme Court in Escorts Ltd. v. Union of India [1993] 199 ITR 43/65 Taxman 420. The appeal of the assessee was allowed by the CIT(A), which order has been affirmed by the Tribunal. The Tribunal held that even if income of the assessee was exempt, claim for depreciation had to be allowed on business principles for determination of extent of application of income o....

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....ssets held by it. In view of these facts, the assessee is having a strong case in its favour; consequently the assessee is entitled to depreciation and TDS deduction." 4. Learned counsel for the revenue submitted that the Tribunal erred in upholding the claim for depreciation, ignoring the mandate of judgment of the Hon'ble Supreme Court in Escort Ltd.'s case (supra). 5. Learned counsel for ....