TaxTMI 
TaxTMI 
1949 (9) TMI 28
X X X X Extracts X X X X
X X X X Extracts X X X X
....only question that we have to consider in this reference is, what is the proper depreciation that should be allowed to the assessee in respect of machinery. The assessee is the Rajratna Naranbhai Mills Co., Ltd., and they are situated in the Baroda State. They were assessed to income-tax for the first time in the year 1940-41. Now one of the permissible allowances in respect of the business is un....
X X X X Extracts X X X X
X X X X Extracts X X X X
....'s assets are the actual cost and nothing should be deducted from the actual cost and he should be allowed depreciation on the actual cost of the assets. The Tribunal took the view that from the actual cost of the assets must be deducted the amount of depreciation applicable to the assets at the rates in force for each year since the 1st of April, 1922, and at the rates in force on the 1st of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... cost price has to be deducted the rates of depreciation which were not allowed to him, but which were applicable to the assets, as laid down in the Act. In my opinion the language of the section is perfectly clear and it is impossible to contend that we should read "applicable" as if it were "allowed". Mr. Kolah has made a grievance of the fact that it is extremely inequitable....