IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No.750 of 2010 Date of decision: 6.1.2011 Commissioner of Income Tax. -----Appellant. Vs. Maharaja Aggarsain Medical Education & Scientific Research Society. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:- Mr. Yogesh Putney, Sr. Standing Counsel for the appellant. --- ADARSH KUMAR GOEL, J. This appeal has been preferred by the revenue under Section 260-A of the Income Tax Act, 1961 (for short, “the Act”) against the order of the Income Tax Appellate Tribunal, New Delhi in I.T.A. No.609/Del/09 for the assessment year 2005-06 proposing to raise following substantial questions of law:- “(i) Whether on the facts and in the circumstances of the case, the learned ITAT was justified in holding that the depreciation on fixed asset is allowable in the case of charitable trust/institution particularly when the income is computed as per provisions of sections 11 to 13 of the Income Tax Act, 1961 as question of depreciation does not arise when capital expenditure is also considered as application of income of the assessee I.T.A. No.750 of 2010 and there remains to assets/WDV for claim of depreciation. The strength is drawn from the order of the Hon’ble Supreme Court of India passed in the case of Escorts Ltd. & another Vs. Union of India and others reported in 199 ITR 43 (108) CTR 275) wherein it has been held that when deduction under s.35(2)(iv) is allowed in respect of capital expenditure on scientific research, no depreciation is allowed under s.32 on the same asset. There is a fundamental axion that double deduction is not intended unless there is a clear statutory indication to the contrary” Learned counsel for the appellant fairly states that the matter is covered against the revenue by earlier order of this Court dated 5.7.2010 in I.T.A. No.535 of 2009 The Commissioner of Income Tax, Karnal v. Market Committee, Pipli. Accordingly, the appeal is dismissed. (ADARSH KUMAR GOEL) JUDGE January 06, 2011 ( AJAY KUMAR MITTAL ) ashwani JUDGE 2