TMI Blog2001 (12) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... rs and directors of the company. The reality before and after the dissolution was the same. The same person who enjoyed the benefits of the ownership of the assets and its uses continue to have such benefits, the two partners indirectly and the assessee itself directly. The findings recorded by the Tribunal in this background cannot be faulted. The question referred to us is therefore answered in favour of the Revenue and against the assessee. - - - - - Dated:- 13-12-2001 - Judge(s) : R. JAYASIMHA BABU., A. K. RAJAN. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-The assessee-company had been on September 1, 1980, admitted as a partner in a firm whose other two partners were the only two shareholders and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over the. assets, valued those items at Rs. 44,45,382 and thereafter made the claim for depreciation with reference to that figure treating that figure as its cost. The Assessing Officer therefore after obtaining the previous approval of the Inspecting Assistant Commissioner determined the cost of the assets taken over by the assessee at the written down value for income-tax purposes as on the date of the take over of the firm. He then proceeded to disallow the sum of Rs. 2,77,205 from the sum of Rs. 5,14,819 that had been claimed by the assessee as depreciation. In the assessee's appeal on this issue, the Commissioner confirmed the disallowance. Further appeal by the assessee to the Tribunal was unsuccessful. This reference before us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of the transfer of the assets directly or indirectly to the assessee where the assets had suffered depreciation prior to such transfer is such as to indicate that the main purpose of transfer was to enable the assessee to gain higher depreciation by taking a higher figure as its cost at the time of such transfer. Here the firm was dissolved within about 13 months of its formation. The two partners besides the assessee-company were also the only two shareholders and directors of the company. The reality before and after the dissolution was the same. The same person who enjoyed the benefits of the ownership of the assets and its uses continue to have such benefits, the two partners indirectly and the assessee itself directly. The fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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