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2004 (10) TMI 72 - HC - Income TaxDepreciation – actual cost - Explanation 6 to section 43(1) - "Whether, the depreciation was correctly allowed on factory and non-factory buildings purchased from Dalmia Cement (Bharat) Ltd. which had ceased to be a holding company in the assessment year 1976-77?" - Whether the written down value of the holding company is to be taken as actual cost of the assessee or the amount paid by the assessee to the holding company - On behalf of the assessee it was contended that actual cost is not static and it is required to be determined year to year - In view of Explanation 6 to clause (1) of section 43 the Assessing Officer as well as the Tribunal have rightly rejected the contention of the assessee and have rightly held that the actual cost once determined under section 43(1) read with Explanation 6 will remain the same for that assessee – Thus answer is required to be given in favour of the Revenue and against the assessee.
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