High Court upholds ITAT order allowing depreciation on assets from Tata Motors Ltd, citing precedent. Appeal dismissed.

The High Court dismissed the appeal challenging the order of the Income Tax Appellate Tribunal, which allowed depreciation on assets acquired from Tata Motors Ltd. The Court relied on a previous ruling in a similar case and concluded that the issue was settled against the Revenue. The appeal was dismissed without costs awarded. Similarly, the Court dismissed the second issue regarding the correct application of provisions for allowing depreciation on assets acquired from Tata Motors Ltd, citing the previous ruling that had already addressed and settled the matter.

---

---

Issues:
1. Challenge to the order of the Income Tax Appellate Tribunal for the Assessment Year 2007-08 regarding depreciation on assets acquired from Tata Motors Ltd.
2. Interpretation of provisions of Section 47 and Explanation 6 to subsection (1) of Section 43 for allowing depreciation on assets acquired from Tata Motors Ltd.

Analysis:
1. The appellant challenged the Tribunal's order upholding the CIT(A)'s directive to allow depreciation on assets acquired from Tata Motors Ltd. The main contention was whether the depreciation should be allowed at the cost of acquisition, considering the subsidiary status of the assessee during the relevant assessment year. The Tribunal based its decision on a previous ruling in the case of CIT v/s. M/s. Essar Oil Ltd., which both parties agreed had already addressed the issues in the present appeal. The Revenue filed the current appeal due to the challenge against the Essar Oil Ltd. decision before the Supreme Court. However, as the Counsel for the Revenue confirmed that the Essar Oil Ltd. decision had not been stayed, the High Court concluded that the issue was settled against the Revenue. Consequently, the appeal was dismissed, and no costs were awarded.

2. The second issue revolved around the correct application of clause (iv) of Section 47 and Explanation 6 to subsection (1) of Section 43 for allowing depreciation on assets obtained from Tata Motors Ltd. The argument centered on whether the written down value (WDV) of the assets in the holding company's books should be considered as the actual cost for the assessee company. The High Court's decision in this matter was influenced by the earlier ruling in the Essar Oil Ltd. case, which had already addressed and settled the issues. Given that the decision in Essar Oil Ltd. had not been stayed by the Supreme Court, the High Court found no reason to keep the current appeal pending and subsequently dismissed it without any costs awarded.

---