TMI Blog2017 (5) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale consideration resulted in a loss of an amount of ₹ 51,6,108/-. Such loss has been written off in the books of accounts and claimed as a business loss. The extent of depreciation that could have been claimed would be the amount, by which the sale consideration falls short of the written down value. In the present case, ₹ 51,6,108/-, the written down value as defined under section 43(6), would mean actual cost less depreciation actually allowed. In the present case, since no depreciation was allowed, the written down value would equal the actual cost. The loss suffered by the assessee on the sale of foreign is quantified at a figure of ₹ 51,6,108/-. The only question that remains is to determine the nature of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , copyrights, trademarks, licences, frachises or any other business or commercial rights of similar nature, being intangible assets acquired on or after the 1st day of April, 1998, Owned, wholly or partly, by the assessee and used for the purposes of the business or profession, the following deductions shall be allowed.) .. .. (iii) in the case of any building, machinery, plant or furniture in respect of which depreciation is claimed and allowed under clause (i) and which is sold, discarded, demolished or destroyed in the previous year (other than the previous year in which it is first brought into use), the amount by which the moneys payable in respect of such building, machinery, plant or furniture, together with the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of the Madras High Court in the case of the Guindy Machine Tools Private Limtied, Vs. Commissioner of Income Tax (254 ITR 780), the appeal of the assessee was allowed. We may also note that the definition of Plant in Section 43(3) includes vehicles and it was established as a fact before the CIT(A) that the foreign cars were indeed used in business during the relevant period. This finding of fact was not challenged by the Revenue before the Income Tax Appellate Tribunal ( tribunal in short) though the conclusion arrived at by the CIT(A) in favour of the assessee was assailed in appeal. 4. The order of the CIT(A) was reversed by the Tribunal by way of a short order without any discussion of either the relevant statutory provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(iii). The clause, as relevant for the period in question was inserted by Finance Act 1998, effective 1.4.1998. The provision is applicable to the assets in question, being foreign cars used in the business of the assessee in terms of section 32 (1)(i) of the Act. The assessee sold the foreign cars and the sale consideration resulted in a loss of an amount of ₹ 51,6,108/-. Such loss has been written off in the books of accounts and claimed as a business loss. The extent of depreciation that could have been claimed would be the amount, by which the sale consideration falls short of the written down value. In the present case, ₹ 51,6,108/-, the written down value as defined under section 43(6), would mean actual cost less depreci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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