Depreciation under amalgamation scheme upheld where Tribunal's sustainable view disclosed no substantial question of law.

Depreciation under a court-sanctioned amalgamation scheme was to be claimed in the manner accepted by the Tribunal, where the acquired assets were taken at book value and the difference was treated as a miscellaneous item to be depreciated over ten years. The HC noted that an earlier decision on the same issue had already treated the Tribunal's approach as sustainable. On that basis, and applying the restraint against appellate interference where a sustainable view has been taken, no substantial question of law arose. The Revenue's challenge therefore failed and the appeal was not entertained on merits.

---

---

Issues: Whether the Tribunal's endorsement of the manner in which depreciation was to be claimed under a sanctioned scheme of amalgamation gave rise to any substantial question of law warranting interference.

Analysis: The assessee had acquired the assets and liabilities of amalgamating companies under a court-sanctioned scheme, which stipulated that the assets would be taken at book value, with the difference to be treated as a miscellaneous item over which depreciation would be claimed over ten years. The Tribunal had accepted that approach, and the Court noted that a previous decision on the same question had already treated the Tribunal's view as sustainable. In such circumstances, and having regard to the settled restraint against appellate interference where a sustainable view has been taken by a lower forum, no substantial question of law was shown to arise.

Conclusion: The challenge to the Tribunal's view failed, and the Revenue's appeal was not entertained on merits.

---