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2017 (8) TMI 612 - BOMBAY HIGH COURTAddition on account of depreciation - increased value of assets being unabsorbed depreciation of the amalgamating company JG Glass Ltd. which had amalgamated into the assessee - Held that:- It is self evident from the reading of Section 32 and Section 43(6)(c)(ii) that the depreciation would be allowed on the written down value of the block of assets in the immediately preceding previous year as reduced by the depreciation actually allowed on the the block of assets in the preceding previous year as further adjusted in terms of Section 43(6)(c)(i) of the Act. In the above view, for the subject assessment year the written down value of the block of assets which includes the assets belonging to the amalgamating company on which depreciation was first taken in the assessment year 1989-90 cannot be disturbed for the subject year unless the written down value of the earlier assessment years is modified. This modification of the written down value would go back to the assessment year 1989-90 when the amalgamation took place and the unabsorbed depreciation was added to the assets of the amalgamating company to determine the written down value of the block of assets. So far as the written down value of the block of assets for assessment year 1989-90 is concerned the inclusion of unabsorbed depreciation into the assets of amalgamating company is now final in favour of respondentassessee by virtue of our dated 10.07.2017 in ITR No.39/1998. Therefore, for all the subsequent years after assessment year 1989-90 depreciation is actually allowed in respect of the written down value of block of assets in accord with Section 32 read with Section 43(6) of the Act. No substantial question of law as the position is self evident on reading of the definition of "written down value" under Section 43(6) of the Act for the purposes of depreciation to be allowed on block of assets as provided under Section 32 of the Act.
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