Section 13(2) of the Income Tax Act

Depreciation claimed by a charitable trust on its assets is an allowable application of income for computing exemption under Section 11, and this does not constitute a double deduction.

A charitable trust is allowed to claim depreciation on its assets for computing its income, even if the capital expenditure incurred on acquiring those assets was treated as an application of income in the year of acquisition.

Charitable institutions are entitled to claim depreciation on assets even when the cost of acquisition has already been treated as an application of income for exemption purposes, as this does not constitute a double deduction.

When computing the income of a charitable trust for exemption under Section 11, depreciation must be allowed as an application of income based on commercial principles. This does not constitute a double deduction.

Depreciation is deductible when computing the income of a charitable trust under Section 11, and treating both depreciation and capital expenditure as an application of income for charitable purposes does not amount to a double deduction.

The 'income' contemplated by Section 11 is the real income, not merely the assessed or assessable income, and income from property held under trust must be arrived at in a normal commercial manner. This implies that statutory deductions under Section 14 are not applicable when income from property held under trust is excluded.

The Revenue cannot apply different standards to different assessees when accepting the correctness of a judicial decision, without just cause.