2001 (6) TMI 33

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.... BABU J.--In section 32(1)(v) of the Income-tax Act, 1961, as it stood prior to April 1, 1984, it had been provided that the initial depreciation granted to hotel buildings under that clause !hall not be deducted in determining the written down value for the purposes of clause (ii). That clause (ii) provided for depreciation at the prescribed percentage of the written down value of the assets on w....

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....having disputed the correctness of such an approach on the part of the Assessing Officer, the appellate authority agreeing with the assessee held that the deduction of the initial depreciation from the value of the asset for the purpose of determining the written down value was required to be made only on and from the assessment year 1984-85, and that initial depreciation that had been granted in ....

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.... required to be taken into account for determining the written down value for the purpose of allowing normal depreciation at the prescribed rate. That benefit was taken away with effect from April 1, 1984. However, the depreciation allowable on the asset in the assessment year 1984-85 was to be with reference to the written down value as it existed at the commencement of the assessment year. The d....

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....ided provision in earlier assessment years. The assessee had obtained the benefit of initial depreciation in the assessment years prior to April 1, 1984. That initial depreciation cannot be subtracted from the value of the building for determining the written down value at the commencement of the assessment year 1984-85 and the depreciation allowed in that year calculated with reference to the ....