Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (8) TMI 111 - GUJARAT HIGH COURT

2016 (8) TMI 111 - GUJARAT HIGH COURT - TMI - Depreciation computation - whether the depreciation should be allowed on the original value of assets even though certain assets were old and obsolete and the respondent had claimed depreciation in its books of accounts for the same? - Held that:- The depreciation provided in the books in the years when the income was exempt cannot be treated as the depreciation “actually allowed”. Accordingly, it was held that as the assessee was not required to com .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the provisions of depreciation. Accordingly, Explanation 6 has been inserted in sub-section (6) of section 43 to clarify that in such a case - - (a) the actual cost of the asset shall be adjusted by the amount attributable to the revaluation of such asset, if any, in the books of account of the assessee; - (b) the total amount of depreciation on such provided in the books of account of the assessee in respect of such previous year or years preceding the previous year relevant to the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

reciation under Sec. 32. See Commissioner of Income-Tax v. SLM Maneklal Industries Limited [1993 (6) TMI 51 - GUJARAT High Court] - Decided in favour of assessee. - TAX APPEAL NO. 1942 of 2006 - Dated:- 5-7-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MR PRANAV G DESAI, ADVOCATE FOR THE OPPONENT : MR JP SHAH, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of this Appeal, the Appellant has challenged the judgment and order dated April 2006 of the I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on the original value of assets even though certain assets were old and obsolete and the respondent had claimed depreciation in its books of accounts for the same? ii) Whether on facts and circumstances of the case the Income Tax Appellate Tribunal was right in holding that the depreciation should be allowed in block of assets on the original value even when certain assets had nil value or were written off in the books of accounts? iii) Whether roads and boundaries, railway sidings, jetty pire, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

value (WDV) of any block of assets. Sub-clause (b) of clause (6) of section 43 provides that written down value in the case of assets acquired before the previous year means the actual cost to the assessee less all depreciation actually allowed to him under the Income-tax Act. 14.2 Some persons were exempt from tax and, therefore, not required to computer their income under the head profits and gain of business or profession . Upon withdrawal of exemption, such persons became liable to income-t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

te the income of such person under the provisions of the Income-tax Act. Hence, the depreciation provided in the books in the years when the income was exempt cannot be treated as the depreciation actually allowed . Accordingly, it was held that as the assessee was not required to compute profits and gains of business or profession under the Income-tax Act, mere passing of accounting entry made for depreciation in the books of accounts was not the depreciation actually allowed as there was no li .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version