2011 (8) TMI 1174

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... be reduced from the income for determining the percentage of funds which had to be applied for the purposes of the trust. There was thus no double deduction claimed by the assessee.
SHRI R V EASWAR, PRESIDENT AND SHRI B RAMAKOTAIAH, ACCOUNTANT MEMBER For the petitioner : Dr K Shivaram For the Respondent : Mr Parthsarthi Naik ORDER RV EASWAR, PRESIDENT: This is an appeal by the departm .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eme Court in the case of Escorts Ltd. vs. Union of India reported in 199 ITR 43 that in no circumstances benefit of double deduction can be claimed and allowed". 2. The assessee is a trust and registered as a charitable organization under section 12A of the Income Tax Act, 1961 and also with the Charity Commissioner, Mumbai on 27.12.1971. In the income and expenditure account filed for the year .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... urt in the case of Escorts Ltd. vs. Union of India (1993) 199 ITR 43 (SC) where double deduction, once as cost of the asset and again as depreciation thereon, was prohibited. He therefore added back the depreciation of ₹ 58,24,330/- to the income of the assessee. 3. On appeal, the CIT(A) allowed the assessee's claim on the basis of the judgment of the Bombay High Court cited supra, against .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tended a double deduction in regard to the same business outgoing and if it is so intended, it will be clearly expressed. On this basis the Supreme Court refused to allow a deduction of depreciation on assets used for scientific research, since the acquisition of the assets themselves were allowable as deduction, even though the expenditure represented capital expenditure. Both these judgments hav .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... percentage of funds which had to be applied for the purposes of the trust. There was thus no double deduction claimed by the assessee. In coming to this conclusion the Punjab & Haryana High Court, inter alia, followed the judgment of the Hon'ble Bombay High Court cited above and distinguished the judgment of the Supreme Court cited supra. In this view of the matter, and respectfully following the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X