https://www.taxtmi.com/caselaws?id=32437 The Supreme Court clarified that "depreciation actually allowed" under Section 43(6)(b) of the Income-tax Act must be genuinely granted and accounted for in taxable income computation. In cases governed by Rule 8, only depreciation deducted in arriving at taxable income should be considered as "actually allowed." The Court held that in instances where Rule 8 applies, only 40% of composite income is taxable, and proportionate depreciation should be accounted for. The Court dismissed the Department's appeals, upholding the High Court's decision that depreciation should be computed by deducting 40% from the actual cost of assets. en-us Wed, 18 Feb 2009 00:00:00 +0530 Mon, 13 Jun 2011 18:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32437 The Supreme Court clarified that "depreciation actually allowed" under Section 43(6)(b) of the Income-tax Act must be genuinely granted and accounted for in taxable income computation. In cases governed by Rule 8, only depreciation deducted in arriving at taxable income should be considered as "actually allowed." The Court held that in instances where Rule 8 applies, only 40% of composite income is taxable, and proportionate depreciation should be accounted for. The Court dismissed the Department's appeals, upholding the High Court's decision that depreciation should be computed by deducting 40% from the actual cost of assets. Case-Laws Income Tax Wed, 18 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32437