1979 (6) TMI 66 - AT - Income Tax

Summary

The Department appealed against AAC's deletion of profit computation under s. 41(2) of the IT Act. ITO calculated profit at Rs. 35,600 on the sale of a truck, but AAC allowed the assessee's claim that depreciation should be based on depreciation actually allowed. The Tribunal confirmed AAC's decision, stating that only allowed depreciation should be considered in profit computation under s. 41(2). The appeal was dismissed.