TMI Blog1980 (7) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... ate to the same assessee and the question referred is common but in relation to the three assessment years 1970-71, 1971-72 and 1972-73. The question referred is as follows : " Whether, on the facts and in the circumstances of the case and on proper interpretation of sections 35 and 43, the capital assets, which are purchased and continued to be utilised for scientific research, would qualify f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the Commissioner, the above question has been referred for the opinion of this court. As is clear from the question itself, the depreciation claim was in respect of assets which had been purchased in earlier years. It is also clear that the assessee had been granted relief under s. 35(2)(ia) of the I.T. Act, 1961, as the capital expenditure had been incurred after the 31st day of March, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s becomes clear by reading of cl. (iv) of s. 35(2) which is as follows : "(iv) where a deduction is allowed for any previous year under this section in respect of expenditure represented wholly or partly by an asset, no deduction shall be allowed under clauses (i), (ii), (iii) and (vi) of sub-section (1) or under sub-section (1A) of section 32 for the same previous year in respect of that asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t representing expenditure of a capital nature incurred before the first day of April, 1967, ceases to be used in a previous year for scientific research related to the business and the value of the asset at the time of the cessation, together with the aggregate of deductions already allowed under clause (i) falls short of the said expenditure, then (a) there shall be allowed a deduction for that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n whether the assessee was entitled to depreciation allowance or not. If the assessee is entitled to depreciation the method prescribed for calculating the actual cost had to be followed and that would not determine the entitlement to depreciation. Therefore, the view taken by the Tribunal that the assessee was entitled to depreciation allowance in respect of the assets in regard to which capital ..... X X X X Extracts X X X X X X X X Extracts X X X X
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