Actual cost of a business capital asset defined by adjusted acquisition cost and special rules for transfers and non-residents. Meaning of actual cost of a business capital asset is determined by formula adjusting cost by credited duties and proportionate subsidies, including pre-use interest. Special rules permit AO with Joint Commissioner approval to determine cost where prior use or transfers were made mainly to reduce tax; treat cost as deemed written down value upon gift, inheritance, conversion to business use, or certain intra-group transfers; set lower of re-acquisition price or deemed written down value in buy-back; and reduce cost for non-residents bringing assets into India by hypothetical allowable depreciation. The Board may prescribe additional inclusions and methods.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Actual cost of a business capital asset defined by adjusted acquisition cost and special rules for transfers and non-residents.
Meaning of actual cost of a business capital asset is determined by formula adjusting cost by credited duties and proportionate subsidies, including pre-use interest. Special rules permit AO with Joint Commissioner approval to determine cost where prior use or transfers were made mainly to reduce tax; treat cost as deemed written down value upon gift, inheritance, conversion to business use, or certain intra-group transfers; set lower of re-acquisition price or deemed written down value in buy-back; and reduce cost for non-residents bringing assets into India by hypothetical allowable depreciation. The Board may prescribe additional inclusions and methods.
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