TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1059
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.... claim of depreciation on the revalued assets? and (ii) Whether the Tribunal was justified in not following the decision of the Supreme Court in M/s. Jogta Coal Co. Ltd. [36 ITR 521] and in [Kalooram Govindram [57 ITR 335] which applies on all fours to the facts of the assessee's case? 2. The assessee was incorporated on 15.12.1982. Assessee was admitted as a Partner in a firm on 19.01.1983. The two erstwhile partners JKK Sundararajah and JKS Manickam had 37.5% share each and assessee had 25% share in the firm. On 31.03.1984, a dissolution deed was executed by three partners, by which, the assessee took over the entire asset and liability of the firm as per the balance sheet figures as on 31.03.1984. The dissolution deed also provide....
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....means the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any other person or authority: Provided that where the actual cost of an asset, being a motor car which is acquired by the assessee after the 31st day of March, 1967, but before the 1st day of March, 1975, and is used otherwise than in a business of running it on hire for tourists, exceeds twenty-five thousand rupees, the excess of the actual cost over such amount shall be ignored, and the actual cost thereof shall be taken to be twenty-five thousand rupees: Provided further that where the assessee incurs any expenditure for acquisition of any asset or part thereof in respect of which a paym....
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.... to the assessment year commencing before the 1st day of April, 1988; and (b) the amount of depreciation that would have been allowable to the assessee for any assessment year commencing on or after the 1st day of April, 1988, as if the asset was the only asset in the relevant block of assets. Explanation 3.-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 business or profession and the Assessing Officer is satisfied that the main purpose of the transfer of such assets, directly or indirectly to the assessee, was the reduction of a liability to income-tax (by claiming depreciation with reference to an enhanced cost), the actual cost to the assessee shall ....
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....ned person and such person acquires on lease, hire or otherwise assets from the first mentioned person, then, notwithstanding anything contained in Explanation 3, the actual cost of the transferred assets, in the case of first mentioned person, shall be the same as the written down value of the said assets at the time of transfer thereof by the second mentioned person. Explanation 5.-Where a building previously the property of the assessee is brought into use for the purpose of the business or profession after the 28th day of February, 1946, the actual cost to the assessee shall be the actual cost of the building to the assessee, as reduced by an amount equal to the depreciation calculated at the rate in force on that date that would have....
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....of such capital asset in the hands of the demerged company. Explanation 8.-For the removal of doubts, it is hereby declared that where any amount is paid or is payable as interest in connection with the acquisition of an asset, so much of such amount as is relatable to any period after such asset is first put to use shall not be included, and shall be deemed never to have been included, in the actual cost of such asset. Explanation 9.-For the removal of doubts, it is hereby declared that where an asset is or has been acquired on or after the 1st day of March, 1994 by an assessee, the actual cost of asset shall be reduced by the amount of duty of excise or the additional duty leviable under section 3 of the Customs Tariff Act, 1975 (51 o....
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....tion by the assessee. Explanation 12.-Where any capital asset is acquired by the assessee under a scheme for corporatisation of a recognised stock exchange in India, approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the actual cost of the asset shall be deemed to be the amount which would have been regarded as actual cost had there been no such corporatization. Explanation 13.-The actual cost of any capital asset on which deduction has been allowed or is allowable to the assessee under section 35AD, shall be treated as 'nil',- (a) in the case of such assessee; and (b) in any other case if the capital asset is acquired or re....