Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 771 - HC - Income TaxWritten down value of block assets – reduction of receipt from insurance company as to the damages u/s 43(6)(c) - block assets (WDV), valued at ₹ 68,06,562/- were destroyed in a fire accident - the insurer paid a sum of ₹ 1,54,99,051/- They, however, deducted only a sum of ₹ 68,06,562/- in the process of working out the WDV, and accordingly, claimed deprecation, in accordance with the relevant provisions - CIT(A) accepted the contention of the assessee - Tribunal took the view, that the reduction in the WDV of the block assets must be equivalent to the value of the newly acquired item, being ₹ 1,38,03,407/- Held that:- The appellate authority took the correct view of the matter in permitting reduction in WDV only to the extent of ₹ 68,06,652/- representing the value of the deduction - Tribunal made an attempt to increase the amount to be deducted, corresponding to the item of machinery that was acquired at the relevant point of time - obviously, the exercise was referable to the last part of clause (B) of special clause (c) of Section 43 (6) of the Act - The expression, reduction does not exceed the WDV as so increased, appears to have been taken into account - It is nobody’s case that the reduction would offset the value in the increase of the WDV of the block assets - That occurred on account of acquiring of new items – there was no basis in the approach of the Tribunal – Decided in favor of assessee.
|