Court rules on revenue, depreciation, profit in currency conversion, asset value revision, loss disallowance, interest withdrawal.

The court ruled in favor of the Revenue regarding the computation of depreciation and profit in pound sterling vs. equivalent rupees, as well as the revision of the written down value of assets due to a change in the definition of 'actual cost.' However, the court favored the assessee by disallowing the loss on remittance of profits and allowing the withdrawal of granted interest by the Income-tax Officer for the assessment years 1968-69 and 1969-70. The decisions were based on legal precedents and interpretations of relevant laws.

---

---

Issues:
1. Computation of depreciation and profit in pound sterling vs. equivalent rupees
2. Revision of written down value of assets due to change in definition of 'actual cost'
3. Disallowance of loss on remittance of profits
4. Withdrawal of granted interest by the Income-tax Officer

Issue 1 - Computation of depreciation and profit:
The court held that the Tribunal was right in determining the written down value of fixed assets in equivalent rupees, not pound sterling, for depreciation and profit computation. This decision was based on a previous case precedent, leading to a ruling in favor of the Revenue.

Issue 2 - Revision of written down value of assets:
The court ruled against the assessee, concluding that the revision of written down value of assets acquired before April 1, 1961, was necessary due to the change in the definition of 'actual cost' introduced by the Income-tax Act, 1961. This decision was based on a previous court judgment, resulting in a ruling favoring the Revenue.

Issue 3 - Disallowance of loss on remittance of profits:
The court held in favor of the assessee, stating that the disallowance of the loss incurred on remittance of profits to the UK was not justified. This decision aligned with a previous case ruling in favor of the assessee.

Issue 4 - Withdrawal of granted interest:
The court addressed the withdrawal of interest granted by the Income-tax Officer in the original assessment for the assessment years 1968-69 and 1969-70. The court rejected the contention that interest must be calculated based on the first assessment only. The court emphasized that interest calculation is part of the assessment process and must be revised accordingly if the assessment is set aside. The court ruled in favor of the Revenue, allowing the withdrawal of interest based on subsequent assessments following a revision by the Commissioner of Income-tax.

In conclusion, the court ruled on various issues related to depreciation computation, asset valuation, loss disallowance, and interest withdrawal, providing detailed reasoning and legal interpretations for each decision. The judgment favored both the Revenue and the assessee on different issues based on applicable laws and precedents.

---