1972 (11) TMI 6

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....that the initial depreciation of Rs. 1,01,814 was not to be deducted for the purpose of computing the written down value for computing the profits under section 10(2)(vii) of the Income-tax Act, 1922? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in applying the provisions contained in section 10(5)(b) instead of section 10(5)(c)?" 2. The year of assessment was 1953-54, the corresponding accounting period being the year that ended on December 31, 1952. The assessee was a Hindu undivided family. This family came into existence as a result of a partition in a larger Hindu undivided family which was effected on October 23, 1951. This larger family was carrying on the business of running moto....

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....preciation allowed to the original Hindu undivided family. This contention was negatived by the Appellate Assistant Commissioner and in further appeal before the Tribunal. 3. Written down value has been defined for the purposes of sub-section (2) of section 10 of the Act in sub-section (5) of section 10. The relevant part of that definition for our purposes is contained in clauses (b) and (c) of sub-section (5) of section 10 of the Act. The proviso to clause (b) and the Explanation to clause (c) are admittedly inapplicable. We shall read clauses (b) and (c) of sub-section (5) of section 10 of the Act : "(5) In sub-section (2) 'paid' means actually paid or incurred according to the method of accounting upon the basis of which the ....

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....means something obtained through laws of descent and distribution from an intestate, in its popular use, it includes property obtained by devise or descent. " 5. The Shorter Oxford English Dictionary gives the meaning of the word inheritance "in the manner : "Inheritance...... being admitted as heir etc ......: 1. The action or fact of inheriting. Hereditary succession to property, a title, etc.; a perpetual or continuing right to an estate, vested in a person and his heirs ...... 2......... : (a) Possession, ownership, of something as one's birthright; right of possession (b) Natural derivation of qualities or characters from parents or ancestry ...... II. That which is inherited...... Property, or an estate, which passes by....