https://www.taxtmi.com/caselaws?id=6550 An assumed gratuity liability taken over as part of the consideration for acquiring an industrial undertaking can form part of the capital cost, because the purchase agreement must be read as a whole and the liability represents part of the price for an enduring capital asset. Depreciation, however, is confined to assets covered by the depreciation provision and cannot be claimed on a gratuity liability or on land, as neither falls within the eligible asset categories. The separate valuation of the components in the agreement also removes any need for remand on that issue. en-us Wed, 22 Nov 2006 00:00:00 +0530 Tue, 13 Sep 2016 14:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6550 An assumed gratuity liability taken over as part of the consideration for acquiring an industrial undertaking can form part of the capital cost, because the purchase agreement must be read as a whole and the liability represents part of the price for an enduring capital asset. Depreciation, however, is confined to assets covered by the depreciation provision and cannot be claimed on a gratuity liability or on land, as neither falls within the eligible asset categories. The separate valuation of the components in the agreement also removes any need for remand on that issue. Case-Laws Income Tax Wed, 22 Nov 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6550