https://www.taxtmi.com/caselaws?id=19332 The court held that Explanation 3 to section 43(1) of the Income-tax Act requires assets to be used by another person for business purposes before transfer to the assessee, with the main purpose being to reduce tax liability. In both cases, the transfer of assets was not primarily for tax liability reduction but due to genuine partnership disputes. The Tribunal's decision to allow depreciation based on market value was upheld as the Income-tax Officer did not establish tax avoidance intent. The court ruled in favor of the assessee in both cases, with no costs awarded. en-us Tue, 06 Sep 1994 00:00:00 +0530 Thu, 05 Nov 2009 15:31:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19332 The court held that Explanation 3 to section 43(1) of the Income-tax Act requires assets to be used by another person for business purposes before transfer to the assessee, with the main purpose being to reduce tax liability. In both cases, the transfer of assets was not primarily for tax liability reduction but due to genuine partnership disputes. The Tribunal's decision to allow depreciation based on market value was upheld as the Income-tax Officer did not establish tax avoidance intent. The court ruled in favor of the assessee in both cases, with no costs awarded. Case-Laws Income Tax Tue, 06 Sep 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19332