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TMI Blog1983 (11) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... e following question has been referred under s . 256(1) of the I.T. Act, 1961, by the Income-tax Appellate Tribunal, Bangalore Bench, for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that no depreciation was allowable while computing the income of the assessee-church ? " Briefly stated, the facts behind the legal f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urch maintenance, parties, flowers, etc., and since the excess income over the expenditure could only be computed as business income, the assessee would be entitled to depreciation. Considering the nature of the activities of the church, the AAC held that the assessee was engaged in a vocation and, therefore, it was entitled to depreciation. Being aggrieved by the order of the AAC, the Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing a business or vocation ......" So stating, the Tribunal reversed the order of the AAC and restored the order of the ITO. In this reference, Mr. K. R. Prasad, learned counsel for the assessee, contended that there is no dispute that the assessee-trust is the owner of the church building and the church is engaged in a vocation like delivering sermons and preaching Bible which are the integral ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adverted could, therefore, be properly considered as vocation. In P. Krishna Menon v. CIT [1959] 35 ITR 48, the Supreme Court observed that the teaching of " Vedanta " could be considered as a vocation. This decision has not been relied upon by the Tribunal, but we see no reason why the ratio cannot be applied to the present case. The preaching of sermons in the church by the representative of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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