TMI Blog2015 (10) TMI 1442X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 2009-10 had been reopened by the Assessing Officer and the depreciation claim of the assessee has been restricted. It was further submitted that the assessee has preferred an appeal against the same and it is pending before the learned Commissioner of Income-tax (Appeals). Under these set of facts, the learned Departmental representative fairly agreed that the question of determination of "actual cost" during the year under consideration does not arise and in this year, the depreciation has to be allowed on the written down value of the windmill as determined in the assessment year 2009-10. Under these set of facts, we are of the view that the issue contested before us is consequential, i.e., it would depend upon the outcom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of ₹ 2.36 crores. 2. The facts relating to the abovesaid issue are that the assessee has purchased a second hand windmill on March 23, 2009, from M/s. Soundararaja Mills Ltd. for a value of ₹ 2.36 crores. The assessee claimed depreciation of ₹ 1.12 crores on the abovesaid value. The Assessing Officer noticed that the seller had already claimed almost full depreciation on the abovesaid windmill. Hence the Assessing Officer, by invoking the provisions of Explanation 3 to section 43(1) determined the cost of the windmill at ₹ 43,28,388. The Assessing Officer computed the depreciation admissible on the abovesaid amount at ₹ 17,31,355 for the immediately preceding year, i.e., for the assessment year 2009-10 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer may, with the previous approval of the Joint Commissioner, determine having regard to all the circumstances of the case. A careful perusal of the above said provisions would show that the same relates to the determination of actual cost to the assessee, meaning thereby, the requirement of determination of actual cost shall arise only in the year of purchase or in the year in which the depreciation was claimed for the first time. 5. In the instant case, we have noticed that the assessee had purchased the windmill on March 23, 2009 and she has also claimed depreciation thereon during the assessment year 2009-10. Accordingly, it was pointed out to both parties that the question of determination of actual cost shall ari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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