https://www.taxtmi.com/caselaws?id=281877 On succession to a business under Section 26(2) of the Indian Income-tax Act, 1922, depreciation for the year of succession was held to be computable separately for the pre-succession and post-succession periods, because the notional assessment under that provision does not preserve the predecessor's depreciation basis for the successor throughout the whole previous year. Depreciation under Section 10(2)(vi) is computed on the original cost to the assessee claiming it, so the successor had to compute depreciation on the cost applicable after transfer. The successor was also not entitled to carry forward the predecessor's unabsorbed depreciation, as the allowance is personal to the assessee and is not transferred merely because the business changes hands. en-us Mon, 10 Mar 1941 00:00:00 +0530 Wed, 10 Jul 2019 12:49:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=281877 On succession to a business under Section 26(2) of the Indian Income-tax Act, 1922, depreciation for the year of succession was held to be computable separately for the pre-succession and post-succession periods, because the notional assessment under that provision does not preserve the predecessor's depreciation basis for the successor throughout the whole previous year. Depreciation under Section 10(2)(vi) is computed on the original cost to the assessee claiming it, so the successor had to compute depreciation on the cost applicable after transfer. The successor was also not entitled to carry forward the predecessor's unabsorbed depreciation, as the allowance is personal to the assessee and is not transferred merely because the business changes hands. Case-Laws Income Tax Mon, 10 Mar 1941 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=281877