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1965 (12) TMI 30 - SUPREME COURTWhether the entire depreciation of the assets was taken into consideration in computing the taxable income and, therefore, the entire amount should have been taken into account by the Income-tax Officer in arriving at the written down value of the assets? Held that:- The mere fact that in the matter of calculation the total amount of depreciation was first deducted from the world income and thereafter the proportion was struck in terms of rule 33 does not amount to an actual allowance of the entire depreciation in ascertaining the taxable income accrued in India. The Income-tax Officer, as we have pointed out earlier, could have adopted a different method by first ascertaining the gross income accrued in India and then deducting from it the allowance under the Act proportionate to the said income. Whatever method was adopted, only a fraction of the total depreciation was actually allowed in ascertaining the taxable income in India. Assessee's contention that under the method adopted in terms of rule 33 of the Income-tax Rules, 1922, no depreciation was allowed at all in ascertaining the taxable income on India, for that was only taken into consideration in arriving at the total world income is not acceptable as we may say that the learned counsel did not press this point seriously either. As we have indicated earlier, only a fraction of the amount of depreciation was actually allowed in the assessment of the income accrued in India. We do not propose to express any opinion on the question whether, if the other methods suggested in rule 33 of the Rules were adopted, it could be held that no depreciation was actually allowed in making the assessment. Appeal dismissed.
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