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TMI Blog2013 (12) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... the following substantial question of law on which the prayer of the Revenue is for admission of the appeal and for its hearing on the merits. "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in upholding the deletion of the addition of Rs. 31,08,381 being the disallowance of depreciation on fixed assets even when the entire expenditure incurred towards purchase of fixed assets has already been claimed in entirety either in the current year or in earlier years and if depreciation is allowed on such assets it would amount to double deduction ?" In other cases also, except the amount of addition, the substantial question of law as has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgments of various High Courts, This order is under challenge in these appeals. To appreciate the contention of the appellant, it would be appropriate if the judgment of the High Court of Madhya Pradesh in the case of CIT v. Raipur Pallottine Society [1989] 180 ITR 579 (MP) ; [1990] 50 Taxman 233 (MP) is taken into consideration the Division Bench considering the similar issue has held as under (page 580 of 180 ITR) : "The material facts giving rise to this reference, briefly, are as follows The assessee is a religious and charitable institution and was assessed in the status of an association of persons. For the assessment year 1973-74, the assessee claimed depreci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ages 44, 45 and 46, it has been noted as follows : "Depreciation is the exhaustion of the effective life of a fixed asset owing to 'use' or obsolescence. It may be computed as that part of the cost of the asset which will not be recovered when the asset is finally put out of use. The object of providing for depreciation is to spread the expenditure, incurred in acquiring the asset, over its effective lifetime ; the amount of the provision, made in respect of an accounting period, is intended to represent the proportion of such expenditure, which has expired during that period. At the end of its effective life, the asset ceases to earn revenue, i.e., the capital value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat decision. For all these reasons, our answer to the question referred by the Tribunal is in the affirmative and against the assessee. In the circumstances of the case, parties shall bear their own costs of this reference." The similar view was taken by the Delhi High Court in DIT v. Vishwa Jagriti Mission I. T. A. No. 140 of 2012-since reported in [2013] 1 ITR-OL 444 (Delhi) and the Division Bench of the Delhi High Court considering the similar controversy has held as under (page 450) : "The judgment of the Supreme Court in Escorts Ltd. v. Union of India (supra) has been rightly held to be inapplicable to the present case. There are two reasons as to why the judgment cannot be applied t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Appeals)." The matter was also considered by the Bombay High Court in the case of CIT v. Institute of Banking [2003] 264 ITR 110 (Bom) wherein the Division Bench headed by the hon'ble justice S. H. Kapadia, as he then was, considering the question held thus (page 114) : "Question No. 2 herein in identical to the question which was raised before the Bombay High Court in the case of Director of Income-tax (Exemption) v. Framjee Cawasjee Institute [1993] 109 CTR (Bom) 463. In that case, the facts were as follows : The assessee was the trust. It derived its income from depreciable assets. The assessee took into account depreciation on those assets in computing the inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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