1960 (4) TMI 77

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.... used only for four months during the accounting year. The Income-tax Officer allowed an initial depreciation to the extent of Rs. 400. He took into account the fact that the car was used for four months in the year and so the proportionate allowance should be one-third. The Income-tax Officer also took into account the circumstance that the car was also used for private purposes. The Income-tax Officer therefore held that deduction should be half for business purposes since the other half was for personal use. According to the Income-tax Officer the initial depreciation was 50 per cent, of Rs. 2,400, and one-sixth of this amount, namely, Rs. 400, was the proper amount of deduction to be allowed for initial depreciation. When the matter cam....

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.... to be allowed to the assessee was properly fixed by him at the sum of Rs. 1,200. We think that the submission of learned standing counsel is well founded and must be accepted as correct. The question of initial depreciation is dealt with in section 10(2)(vi) which reads as follows: "10. (2) Such profits or gains shall be computed after making the following allowances, namely: (vi) in respect of depreciation of such buildings, machinery, plant, or furniture being the property of the assessee, a sum equivalent, where the assets are ships other than ships ordinarily plying on inland waters, to such percentage on the original cost thereof to the assessee as may in any case or class of cases be prescribed and in any other case, to such pe....