1994 (9) TMI 25

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....onsideration for the purpose of allowing depreciation as against the written down value taken by the Income-tax Officer in the assessment order passed for the assessment year 1976-77 ? " Tax Case No. 322 of 1981 : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the market value of the assets, viz., Rs. 5,59,730, should be taken into account to allow depreciation instead of the book value, viz., Rs. 2,79,871, adopted by the Income-tax Officer ? " The questions relate to the assessment years 1975-76 and 1976-77 and for that purpose, two references have been made. The facts necessary for the decision of the questions are that the assessee was a registered partn....

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....stances of the case clearly indicate that there was a quarrel among the brothers after the death of their father, which necessitated the dissolution of the partnership and distribution of the assets, The Tribunal was, therefore, of the view that the transfer of assets was not for the purpose of reducing the liability to income-tax. In this view of the matter, the decision of the Appellate Assistant Commissioner was affirmed. The Department thereafter asked for a reference, which has been granted and the matter is before this court. Explanation 3 to section 43(1) of the Act would be attracted only in cases where, before the date of acquisition by the assessee, the assets were at any time used by any other person for the purposes of his bu....