High Court allows deduction of initial depreciation for computing written down value

The High Court of Madras ruled in favor of the assessee, allowing the deduction of initial depreciation from the cost of assets for computing the written down value for the year 1985-86. The amendment to section 32(1)(iv) of the Income-tax Act, 1961 was deemed inapplicable retroactively, upholding the Tribunal's decision.

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The High Court of Madras ruled in favor of the assessee regarding the deduction of initial depreciation from the cost of assets for computing the written down value for the year 1985-86. The amendment to section 32(1)(iv) of the Income-tax Act, 1961 was not in effect at that time. The Tribunal's decision was upheld.

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