https://www.taxtmi.com/caselaws?id=12720 Depreciation after acquisition of assets on dissolution of a firm turned on whether Explanation 3 to s. 43(1) permitted substituting the written down value/book value for the enhanced valuation claimed as "actual cost." The HC held the assessee acquired only specified assets, not a running business, and the authorities could invoke Explanation 3 only by determining actual cost "having regard to all the circumstances" and by adducing evidence to dislodge the registered valuer's report; mere suspicion of revenue defraud or ipse dixit adoption of written down value was insufficient. Since no evidence was led and no finding was recorded that the main purpose of transfer was to claim depreciation on enhanced cost, Explanation 3 was inapplicable; depreciation on enhanced value was allowed. en-us Fri, 25 Jan 2002 00:00:00 +0530 Tue, 23 Dec 2025 13:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12720 Depreciation after acquisition of assets on dissolution of a firm turned on whether Explanation 3 to s. 43(1) permitted substituting the written down value/book value for the enhanced valuation claimed as "actual cost." The HC held the assessee acquired only specified assets, not a running business, and the authorities could invoke Explanation 3 only by determining actual cost "having regard to all the circumstances" and by adducing evidence to dislodge the registered valuer's report; mere suspicion of revenue defraud or ipse dixit adoption of written down value was insufficient. Since no evidence was led and no finding was recorded that the main purpose of transfer was to claim depreciation on enhanced cost, Explanation 3 was inapplicable; depreciation on enhanced value was allowed. Case-Laws Income Tax Fri, 25 Jan 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12720