1985 (2) TMI 61

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.... end of each month that company was to issue prize point cheques, each point being equal to Rs. 500. But that scheme did not allow the dealer to encash the total number of points. The dealer was to select any prize article from a catalogue which detailed the description of the prize items together with a number of points against each. Under that scheme the assessee who had earned 148 points chose two ambassador cars as the prize items to which it was entitled. Accordingly, TAFE delivered two ambassador cars, valued at Rs. 76,000. It was conceded by the assessee that this sum of Rs. 76,000 was liable to be taxed as the income of the assessee under section 28(iv) of the Income-tax Act, 1961 ('the Act'), which requires the value of any benefit....

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..... That is the reason why section 32 of the Act provides that in respect of depreciation of plant or machinery owned by the assessee and used for the purpose of business a deduction shall be given. The assessee, admittedly, fulfils these two conditions, viz., that the asset is owned by it and also used in its business. But while making the computation, the percentage of depreciation depends upon the actual cost of the asset. Section 43(1) of the Act defines actual cost to mean the actual cost as reduced by any portion of the cost met directly or indirectly by any other person. According to the revenue, the cost of the two cars has been met by TAFE and, therefore, the cost to the assessee is nil. But we are unable to accept this contention on....