Allowing the appeal the Court held that a charitable institution is entitled to depreciation. Once assessee was allowed depreciation, it would be entitled to carry forward the depreciation. Court held that the charitable trust is entitle to set off excess application of income of earlier assessment years against income of current assessment year.  Court also held that if the judgments and orders of the High Courts are applicable to the facts and circumstances of a case pending before the Commissioner (Appeals), he must follow them without any deviation. Similarly the Tribunal must also follow the judgments and orders of the High Courts. (AY. 2009-10)