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2016 (6) TMI 958 - HC - Income TaxSlump sale of an undertaking - whether corresponding WDV is required to be reduced from the remaining block and depreciation on such reduced block can only be allowed as held by ITAT? - Held that:- It is to be noted that Section 43(6) which provides “written down value”, more particularly clause (C) whereby Section 43 (6)(c) was amended on 01/04/2000 and therefore the observations in paragraph No.19.1 of ITAT are contrary to the law which was prevailing in the relevant assessment year. The said provision came into force on 01/04/2000 and therefore it can be made applicable for the assessment year 2001-2002 and the applicability of the same without referring the same, in our view is bad in law and therefore the said issue is required to be answered in favour of assessee and against the department. Thus, the issue No.1 is answered in favour of assessee and against the department. Cost of bonus shares taken at Rs.nil - the said bonus shares are issued prior to the amendment to S.55(2)(aa) - Held that:- As so far as the finding of the AO rejecting the claim of the appellant on the ground that the cost of the bonus shares is to be taken at NIL as per the amended provisions of law, in view of the judgment of the Constitutional Bench in case of CIT V. Gold Co. Ltd. [1969 (4) TMI 29 - SUPREME Court ] which has been referred to in Escorts Farms (Ramgarh) Ltd. (1996 (9) TMI 4 - SUPREME Court ), Section 55(2)(aa) which came into operation on 01/04/1996 and therefore the transaction of disposing of original share on average price is required to be benefited to the appellant and ought to have been accepted by the AO which has been referred by the Tribunal. Thus, this issue is also answered in favour of appellant-assessee
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