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2015 (10) TMI 1090 - HC - Income TaxDepreciation claim waived - assessee had taken the benefit of investment allowance under Section 32A - whether the assessing authority was entitled to compute the income by allowing depreciation even though the assessee has not made any claim for such depreciation? - Held that:- When the claim for depreciation was once waived by the assessee and he chose to avail himself of the benefit of investment allowance under Section 32A of the Income Tax Act, he could not at a subsequent stage revive the claim for depreciation during the assessment year 1984-85. Moreover, there is a statutory bar contained in Section 32A, which provides that no deduction shall be allowed under Section 32A in respect of “any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains of business or profession” of any one previous year. When the assessee has opted to take advantage of investment allowance, rather than deduction of the whole amount of actual cost by way of depreciation, he is now estopped from contending otherwise. - Decided against assessee. Assessment U/s. 41(2) - Held that:- The order under challenge passed by the learned Tribunal holding that in the absence of any benefit having been availed by the asessee on account of depreciation, the question of any assessment under Section 41(2) of the Income Tax Act could not arise is affirmed.
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