Full Judgment Text & Judicial Ruling

1965 P T D 161

1965 P T D 161

[Mysore (India)]

Before K. S. Hegde and G. K. Govinda Bhat, JJ

G. R. JAYARAMA REDDY

versus

COMMISSIONER OF INCOME-TAX, MYSORE

I. T. R. C. No. 20 of 1963, decided on 10th February 1964.

Depreciation

---Balancing charge-Computation of written down value Initial depreciation whether taken into account - Indian Income-tax Act, 1922, S. 10 (2) (vi), (vii), Second Proviso.

Initial depreciation allowed under section 10 (2) (vi) (a) of the Indian Income-tax Act, 1922, should be taken into account in ascertaining the written down value for the purpose of computing profit under the Second Proviso of section 10 (2) (vii) of the Act.

Esthuri Aswathiah v. Commissioner of Income-tax (1963) 50 I T R 764 fol.

K. Srinivasan for the Assessee.

JUDGMENT

HEGDE, J.-This is a reference under section 66 (1) of the Indian Income-tax Act, 1922. The question of law referred is:

"Whether, in computing the written down value for the purposes of the Second Proviso to section 10 (2) (vii) the initial depreciation allowed under section 10 (2) (vi) is to be included? "

The question has to be answered in favour of the Revenue, in view of the decision of this Court in Esthuri Aswathiah v. Commissioner of Income-tax ((1963) 50 I T R 764). In other words, our answer to the question referred is that the initial depreciation allowed under section 10 (2) (vi) (a) should be taken into account in ascertaining the written down value for the purposes of computing the profit under section 10(2) (vii) of the Indian Income-tax Act, 1922. No costs.

Question answered in the affirmative.

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