9911796707
TMI Blog2001 (12) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... d been on September 1, 1980, admitted as a partner in a firm whose other two partners were the only two shareholders and directors of the company. That firm was dissolved with effect from October 18, 1981, and as per the terms of the dissolution the assessee took over all the assets and liabilities of the firm. According to the assessee, the assets were taken over at the market value. The value so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee shall be such an amount as the Assessing Officer may, with the previous approval of the Joint Commissioner, determine having regard to all the circumstances of the case." The Assessing Officer found that while the original cost of the machineries was Rs. 90,68,955.57, the written down value of those machineries as per the firm's assessment was Rs. 23,81,706. However, the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the question referred is: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the provision of Explanation 3 to section 43(1) applied to the facts of the case and that the assessee is not entitled to depreciation on the book value of assets of the earlier firm but only on the value as fixed by the Income-tax Officer under Explanation 3 to secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee had adopted the market value at the time of dissolution even when such value is much higher than the written down value, would afford sufficient basis for invoking Explanation 3 to section 43(1) when the surrounding circumstances indicate that the purpose of the transfer of the assets directly or indirectly to the assessee where the assets had suffered depreciation prior to such tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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