Madras H.C : The tax case arises out of the assessment, for the year 1985-86. The amendment effected to s. 32 (1)(iv) of the IT Act, 1961, providing that initial depreciation was not to be deducted from the cost of the assets for the purpose of computing the written down value was not on the statute book then.

High Court Of Madras

CIT vs. Sri Ganapathy Mills Co. Ltd.

Sections 32(1)(iv), 43(6)

Asst. Year 1985-86

R. Jayasimha Babu & A.K. Rajan, JJ.

Tax Case No. 392 of 1995

18th October, 2001

Counsel Appeared : Mrs. Chitra Venkataraman, for the Revenue : P.P.S. Janardhana Raja, for the Assessee

JUDGMENT

R. JAYASIMHA BABU, J. :

The tax case arises out of the assessment, for the year 1985-86. The amendment effected to s. 32 (1)(iv) of the IT Act, 1961, providing that initial depreciation was not to be deducted from the cost of the assets for the purpose of computing the written down value was not on the statute book then. The first appellate authority as also the Tribunal has, therefore, rightly held that that amendment does not come in the way of the assessee not deducting the initial depreciation from the cost of the assets for the purpose of computing the written down value. The question referred to us regarding the correctness of the order of the Tribunal is, therefore, answered in favour of the assessee and against the Revenue.

[Citation : 256 ITR 657]