https://www.taxtmi.com/caselaws?id=286720 For notional assessments under Section 26(2) of the Income Act, 1922 the successor must be treated as the predecessor for computation of the previous year's profit and entitled to the predecessor's statutory deductions for depreciation under Section 10(2); accordingly depreciation allowances are to be allowed on the predecessor's entitlement. Amounts constituting prior losses, interest on advances to liquidators, or interest on capital do not form part of the consideration in the transfer deed and therefore cannot be included in the purchaser's original cost for depreciation. Expenditures by the successor on capital additions to buildings and machinery are part of original cost for depreciation. en-us Tue, 18 Apr 1939 00:00:00 +0530 Thu, 12 Mar 2020 16:38:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=286720 For notional assessments under Section 26(2) of the Income Act, 1922 the successor must be treated as the predecessor for computation of the previous year's profit and entitled to the predecessor's statutory deductions for depreciation under Section 10(2); accordingly depreciation allowances are to be allowed on the predecessor's entitlement. Amounts constituting prior losses, interest on advances to liquidators, or interest on capital do not form part of the consideration in the transfer deed and therefore cannot be included in the purchaser's original cost for depreciation. Expenditures by the successor on capital additions to buildings and machinery are part of original cost for depreciation. Case-Laws Income Tax Tue, 18 Apr 1939 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=286720