TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether, for depreciation under Section 10(2)(vi) of the Income-tax Act, 1922, the expression "original cost thereof to the assessee" refers to the cost to the present assessee or to a predecessor in title, and how that cost is to be ascertained where the property was acquired otherwise than by purchase.
Analysis: The expression "the original cost thereof to the assessee" was construed by reference to the definition of "assessee" in Section 2(2) of the Act. The phrase was held to denote the person by whom income-tax is payable, namely the present assessee, and not a prior owner. The Court rejected the view that depreciation must be based on the predecessor's cost. Where the property was not purchased, the proper basis was held to be the real value of the property when acquired by the assessee, less expenditure necessarily incurred to complete title, such as probate charges if properly referable to that acquisition.
Conclusion: The question was answered in favour of the assessees; "original cost" means the cost to the present assessee at the time of acquisition, not the cost to a predecessor in title, and it is to be ascertained by taking the property's real value on acquisition, less necessary title-completion expenditure.
Ratio Decidendi: For depreciation under the Income-tax Act, 1922, "original cost thereof to the assessee" refers to the cost to the assessee who is presently chargeable, and where the asset was not purchased, its value at the time of acquisition forms the basis, subject to necessary title expenses.
TaxTMI 
TaxTMI 
