Depreciation claim cannot be thrust on an assessee after withdrawal where Explanation 5 to section 32(1) does not assist the Revenue.

Explanation 5 to section 32(1) of the Income-tax Act did not justify forcing depreciation on an assessee after the claim had been withdrawn; on the facts, the Revenue's argument failed and the High Court's dismissal of the Revenue's appeals was left undisturbed. The assessee's depreciation claim, as reflected in the original return, could not be compelled in the manner urged by the Revenue.

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Issues: Whether the Tribunal was right in allowing the assessee's depreciation claim as per the original return, and whether Explanation 5 to Section 32(1) of the Income-tax Act, 1961 could compel depreciation to be granted notwithstanding the assessee's withdrawal of the claim.

Analysis: The Revenue relied on Explanation 5 to Section 32(1) of the Income-tax Act, 1961 to contend that depreciation could not be denied. The Court held that, on the facts and circumstances of the case, the said Explanation did not assist the Revenue. The order of the High Court dismissing the Revenue's appeals was not found to suffer from any error warranting interference.

Conclusion: The assessee succeeded; the claim for depreciation could not be thrust upon it in the manner urged by the Revenue.

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