Dismissing the appeal of the revenue the Court held that the income of a charitable trust derived from building, plant and machinery and furniture is liable to be computed in normal commercial manner although the trust may not be carrying on any business and the assets in respect whereof depreciation is claimed may not be business assets. The income of the trust is required to be computed under S. 11 on commercial principles after providing for allowance for normal depreciation and deduction thereof from gross income of the trust. Even if the amount spent on acquisition of capital assets had been treated as application of income for charitable purposes, depreciation on such assets is allowable. (AY. 2008 -09, 2009 -10)