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2007 (10) TMI 381 - HC - Income TaxDepreciation- A reading of Explanation 2A to section 43(6) of the Act, makes it clear that the written down value of the transferred capital assets to the amalgamated company would be the same as it would have been as if the amalgamated company would be the same as it would have been as if the amalgamating company continued to hold the capital asset for the purpose of its business. The Statutory provision makes it clear that the written down value of the asset would be the actual cost of asset of the assessee less depreciation allowed to the company any unabsorbed depreciation which was not set off for carry forward cannot be taken into account. Held that- the Tribunal was right in holding that the amalgamated company was entitled to depreciation on the written down value of asset as increased by the unabsorbed depreciation carried forward in the hands of amalgamating company.
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