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Help, New Delhi vs Assessee on 12 December, 2014 cites

Escorts Limited And Anr. Etc. Etc vs Union Of India And Ors on 22 October, 1992

"P. 13;- The judgment of the Supreme Court in Escorts Limited vs. 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 to the present case. Firstly, the Supreme Court was not concerned with the case of a charitable trust/institution involving the question as to whether its income should be computed on commercial principles in order to determine the amount of income available for application to charitable purposes. It was a case where the assessee was carrying on business and the statutory computation provisions of Chapter IV-D of the Act were applicable. In the present case, we are not concerned with the applicability of these provisions. We are concerned only with the concept of commercial income as understood from the accounting point of view. Even under normal commercial accounting principles, there is authority for the proposition that depreciation is a necessary charge in computing the net income. Secondly, the Supreme Court was concerned with the case where the assessee had claimed deduction of the cost of the asset under Section 35(1) of the Act, which allowed deduction for capital expenditure incurred on scientific research. The question was whether after claiming deduction in respect of the cost of the asset under Section 35(1), can the assessee again claim deduction on account of depreciation in respect of the same asset. The Supreme Court ruled that, under general principles of taxation, double deduction in regard to the same business outgoing is not intended unless clearly expressed. The present case is not one of the type, as rightly distinguished by the CIT Appeals)."
Supreme Court of India Cites 40 - Cited by 484 - Full Document

Commissioner Of Income-Tax vs Programme For Community Organisation on 25 October, 1996

9. Since we have already held that the appellant society is eligible for exemption u/s 11 and 12 of the Act, the necessary corollary is that treatment of heads of income become irrelevant. The Hon'ble Supreme Court in CIT Vs. Programme for community organization (2001) 248 ITR (SC) while approving the Kerala High Court decision reported in (1997) 228 ITR 620 (Kerala) as to the manner of computation of charitable institution held that income has to Page 10 of 11 be computed on commercial basis and not head-wise on statutory basis. (refer CBDT Circular No.5P, dated 19.06.1998). As a result this ground raised is rejected.
Kerala High Court Cites 8 - Cited by 111 - Full Document
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