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2018 (3) TMI 377 - AT - Income TaxDepreciation - Determination of cost of plant and machinery - inclusion of payment on account of liability for gratuity, PF, bonus and other statutory liabilities - payment was made on behalf of the vendor - Held that:- Since this issue is settled by the decision of the Hon’ble Supreme Court in CIT vs Hooghly Mills Co. Ltd [2006 (11) TMI 137 - SUPREME Court] as held had it been a case where the agreement to sale mentioned the entire sale price without separately mentioning the value of the land, building or machinery, we would have remitted the matter to the tribunal to calculate the separate value of the items mentioned in Section 32 and granted depreciation only on these items. However, in the present case, the agreement itself mentioned the value of the building, plant and machinery. Hence it is not necessary to remit the matter to the tribunal in this case. No doubt, the word 'plant' had been given the deeming meaning vide Section 43(3) but even this deeming meaning does not include the gratuity liability. No depreciation can be granted on the gratuity liability taken over by the respondent assessee. Decided in favor of revenue.
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