1984 (8) TMI 47

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....pleted after March 31, 1961, was proper ? " The assessment year in question is 1963-64. The only question which calls for our decision is whether the assessee was entitled to initial depreciation. In order to appreciate the point in controversy, the history of the proceeding must be set out. The assessee is a public limited company. The assessee claimed initial depreciation for its buildings completed during the previous year relevant to the assessment year in terms of s. 32(1)(iv) of the Act. The ITO rejected the claim of the assessee without discussing any aspect of the matter. On appeal by the assessee, the AAC remanded the matter to the ITO with a direction to examine the claim of the assessee and to find out as to which of the bu....

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....ee shall be entitled to depreciation on buildings at a certain percentage, in the case of any building which has been newly erected after the 31st day of March, 1961, where the building is used solely for the purpose of residence of persons employed in the business. The buildings in question were used for the residence of the officers of the company. The entire controversy hinges around the expression " newly erected ". Mr. B. P. Rajgarhia, learned counsel for the petitioner, has submitted that the word " erected " takes in its sweep the commencement of the erection as well as the completion thereof and, therefore, the fall effect of s. 32(1)(iv) of the Act must relate to only those cases where the commencement as well as completion has tak....

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.... only to the completion of the process of erection without any reference to the date of commencement. There is yet another reason for the view that we have taken in regard to the content of the expression " newly erected ". The allowance as contemplated by s. 32(1)(iv) of the Act found place in the Indian I.T. Act, 1922, as well. In s. 10(2)(vi) of the old Act, it was laid down that in the case of a newly erected building, the erection of which had begun and completed between April 1, 1946, and March 31, 1956 (both dates inclusive), 15% of the cost was allowed as initial depreciation to the assessee. It is thus noticeable that where the law-makers intended to lay down the commencement as well as completion of new buildings as the test fo....