Aggregate depreciation cannot exceed original cost where the proviso sets a ceiling on all allowances under the provision.

Proviso (c) to section 10(2)(vi) was construed as imposing a ceiling on the aggregate of all depreciation allowances under the clause, not merely on the exceptional case of ocean-going ships. Initial depreciation remained depreciation for this purpose, even though it was excluded in computing written down value. The proviso referred to the original cost of the depreciable asset, and there was no basis to substitute written down value for that measure. On that construction, depreciation allowances could not exceed the asset's original cost.

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Issues: Whether depreciation allowance, including initial depreciation, could be allowed so that the aggregate exceeded the original cost of the depreciable asset under section 10(2)(vi) and proviso (c) thereto.

Analysis: The ceiling in proviso (c) to section 10(2)(vi) was held to apply to the aggregate of all depreciation allowances under the clause and could not be confined only to the exceptional case of ocean-going ships. The fact that initial depreciation was excluded in computing written down value did not alter its character as depreciation for the purpose of the proviso. The proviso referred to original cost, not written down value, and there was no warrant for substituting one for the other.

Conclusion: The assessee was not entitled to depreciation allowances exceeding the original cost of the asset.

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