Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 3 - ITAT MUMBAIDepreciation by adopting the stamp value as per the provision of Section 50C of the Act instead of value declared as per WDV - HELD THAT:- AO and CIT(A) has taken the value as per the provision of Section 50C of the Act and disallowed the differential depreciation claimed - In our view, while computing the amount of depreciation allowable for a year, what is to be reduced from the opening WDV is the price for which an asset, comprising with a particular block of assets, is sold during the year. There is no provision to substitute this money payable by any other value, either expressly or by implication, much less substantiating fair market value or stamp duty value as per the provision of Section 50C of the Act for the price agreed. As per the scheme of the provision of Section 32 r.w.s 43(6) of the Act, which is a self contained scheme to compute the amount of deprecation allowable under the Act. According to our view, the reference to section 48 of the Act or the termful value of consideration are absent. Therefore, even otherwise, these two sections are not applicable in section 43(6) - assessee relied on the decision of Hon’ble Bombay High Court in the case of Cable Corporation of India Ltd. [2011 (6) TMI 233 - BOMBAY HIGH COURT] Thus we are of the view that the provision of Section 50C of the Act will not apply and the claim of the depreciation is allowable. Hence, we allow the claim of the assessee and set aside the order of the lower authorities on this issue. - Decided in favour of assessee.
|