1980 (7) TMI 92

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....ivered by SRINIVASA IYENGAR J.-These three references relate to the same assessee and the question referred is common but in relation to the three assessment years 1970-71, 1971-72 and 1972-73. The question referred is as follows : " Whether, on the facts and in the circumstances of the case and on proper interpretation of sections 35 and 43, the capital assets, which are purchased and conti....

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....Tribunal confirmed the view taken by the AAC. At the instance of the Commissioner, the above question has been referred for the opinion of this court. As is clear from the question itself, the depreciation claim was in respect of assets which had been purchased in earlier years. It is also clear that the assessee had been granted relief under s. 35(2)(ia) of the I.T. Act, 1961, as the capital e....

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....on the ground that relief is granted under that section. This becomes clear by reading of cl. (iv) of s. 35(2) which is as follows : "(iv) where a deduction is allowed for any previous year under this section in respect of expenditure represented wholly or partly by an asset, no deduction shall be allowed under clauses (i), (ii), (iii) and (vi) of sub-section (1) or under sub-section (1A) of se....

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...." Clause (ii) made provision that : "... where an asset representing expenditure of a capital nature incurred before the first day of April, 1967, ceases to be used in a previous year for scientific research related to the business and the value of the asset at the time of the cessation, together with the aggregate of deductions already allowed under clause (i) falls short of the said expend....