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Issues involved:
The judgment addresses various issues including the determination of depreciation for assessment years, the application of Taxation Laws (Part B States) (Removal of Difficulties) Order, 1950, validity of legislation, allowance of expenditure for construction of approach roads, entitlement to depreciation for such expenditure, and deduction of legal fees for contesting penalties. Depreciation Calculation: The court considered the depreciation calculation for the assessee, a public limited company assessed u/s 4(1)(a) and 4(1)(c) of the Indian Income-tax Act, 1922. The issue revolved around determining the written down value of business assets u/s 10(5)(b) for assessment years 1953-54 to 1959-60. The court held that only the part of depreciation included in the computation of taxable income could be considered, not the total depreciation for world income calculation. Application of Taxation Laws Order: Regarding the application of Taxation Laws (Part B States) (Removal of Difficulties) Order, 1950, the court examined if it could be invoked for a company previously assessed as a non-resident. The court referred to previous decisions and upheld the validity of Paragraph 2 of the Order, emphasizing its relevance to determine taxable income. Expenditure Allowance: The judgment also addressed the allowance of expenditure for constructing approach roads within the factory premises. The court ruled that such expenditure, considered of a capital nature, was properly disallowed as a revenue outgoing. Legal Fees Deduction: Lastly, the court deliberated on the deduction of legal fees paid for contesting penalties imposed under Central Excise Rules. The contention was negatived based on precedents, with the court not answering the question due to the minimal amount involved. The judgment provided detailed analysis and conclusions for each issue raised, ensuring clarity on the application of relevant laws and precedents.
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