2002 (8) TMI 60

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....IMHA BABU J.-The assessment year is 1983-84. The questions referred to us at the instance of the Revenue are: "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the terminal allowance under section 32(1)(iii) of the Income-tax Act, 1961, in respect of the demolished building is Rs. 1,60,866 and not Rs. 1,10,867 as computed by t....

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....sed in Sri Vasavi College, Erode. The assessee admitted having given those materials to that college, one of whose trustees was also a director of the company. The assessee valued those materials at Rs. 20,000. The Income-tax Officer assessed the scrap value at Rs. 50,000 and disallowed that amount from the amount claimed by the assessee as loss on the assets. That assessment having been affirm....

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....ther with the amount of scrap value, if less than written down value. The scrap value will arise for consideration where assets are discarded or demolished or destroyed and will not arise for consideration where assets are sold. When the asset is discarded, demolished or destroyed, the asset which is no longer put to use or which has suffered damage or destruction, may even after being so discarde....

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.... that scrap into money by selling that scrap or by merely giving away that scrap in whole or in part to others without realising anything in return from them, does not have the effect of depriving the scrap of the value it otherwise has. The fact that the assessee by choosing to gift away the salvaged material after the building had been demolished, chose not to realise the price from the perso....