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Issues:
1. Whether the Tribunal was justified in upholding the direction to withdraw depreciation on assets allowed by the Income-tax Officer, though not claimed by the assessee for the assessment years 1978-79 and 1979-80. 2. Whether the Tribunal was justified in upholding the order to compute capital gain/loss on the sale of assets by considering the original cost or written down value after withdrawing depreciation for the assessment year 1979-80. Analysis: Issue 1: The case involved a dispute regarding the allowance of depreciation to the assessee for the assessment years 1978-79 and 1979-80. The assessee did not claim depreciation nor furnish the required details for depreciation under section 32 of the Income-tax Act. The Assessing Officer allowed depreciation despite the lack of claim or details. The Commissioner of Income-tax (Appeals) and the Tribunal held that the depreciation should not have been allowed in the absence of claim or furnished details. The High Court examined the statutory provisions of section 32 and 34, along with relevant case laws. It was established that the assessee had not provided necessary particulars for depreciation allowance. The Court emphasized that without the required details, the Assessing Officer was not justified in allowing depreciation. Therefore, the Tribunal's decision to uphold the withdrawal of depreciation was deemed correct. Issue 2: The second issue pertained to the computation of capital gain/loss on the sale of assets for the assessment year 1979-80. This question was consequential to the first issue. Since the Tribunal's decision on withdrawing depreciation was upheld, the computation of capital gain/loss had to consider the original cost or written down value after withdrawing depreciation. The Court, in line with its decision on the first issue, found in favor of the assessee and against the Revenue on this matter as well. The Court concluded that the Tribunal's direction to compute capital gain/loss by considering the original cost or written down value after withdrawing depreciation was justified. In conclusion, the High Court answered both questions in favor of the assessee and against the Revenue. The judgment highlighted the importance of claiming depreciation and providing necessary details for allowance under the Income-tax Act. The application was accordingly disposed of with agreement from both judges involved in the judgment.
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