1932 (4) TMI 20 - HC - Income Tax

Summary

The High Court of Patna clarified that the term "original cost" in Section 10(2)(vi) of the Act refers to the genuine cost paid by the assessee, not what the assessee may have stated. They disagreed with the Madras High Court's decision and agreed with the Bombay High Court's decision in the case of In re The Saraspur Mills Co. The court emphasized the importance of preventing fraud and ruled in favor of the respondent.