Whether, in computing capital gains on sale of motor car to which proviso to section 43(1) applies for the purposes of depreciation allowance, actual cost has to be historic and true cost of acquisition or actual cost as artificially reduced

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....o to section 43(1) applies for the purposes of depreciation allowance, actual cost has to be historic and true cost of acquisition or actual cost as artificially reduced 1. I am directed to say that the Board has considered whether in computing the capital gains on sale of motor car to which proviso to section 43(1) applies for purposes of allowance of depreciation, the actual cost has to be hist....

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....iable asset for the purpose of computation of capital gains, shall be taken to be its written down value as defined under section 43(6). Referring to section 43(6) the written down value is linked to the actual cost, which in the case of motor car of the nature referred to above, is subject to the limitation enacted in the proviso to section 43(1). 4. The definition given in section 43 of the wor....

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.... above, for computation of capital gains only, the historic and the true cost of acquisition of the motor car to which the proviso to section 43(1) applies, is to be taken into consideration. To cite an example: A purchased a motor car for Rs. 50,000 in 1967 for purposes of business. After three years' use in carrying on the business the car is sold in 1970 for Rs. 40,000. At the time of sale the....