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TMI Blog2009 (10) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... alculating depreciation and further erred in deleting the disallowance made in this respect. 2. To adjudicate on this appeal, only a few material facts need to be taken note of. The assessee has sold a flat at Casa Grande CHS Ltd, Little Gills Road, Mumbai - 400 006 for a consideration of ₹ 9,00,000/-. In the course of assessment proceedings and in order to ascertain fair market value on the date of transfer, the Assessing Officer referred the matter to the Departmental Valuation Officer. The District Valuation Officer- valued the Fair Market Value of the property at ₹ 66,44,902/-, vide his report dated 28.01.2000. Accordingly, a letter as addressed to the assessee company calling for its objection, if any, for adopting the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant factor is money payable on account of sale of the asset and even assuming that market value of the asset sold is higher than the stated sale consideration, such market price has no role in the matter. In addition to this contention, there were other contentions as well but, for our purposes, it is not really necessary to address ourselves to those issues. Learned CIT (A) upheld this contention of the assessee and observed as follows : I have considered the submissions made before me and have also perused various decisions cited before me. I agree with the submission of the Learned AR. Under Income Tax Act the depreciation u/s 32 is allowed on the written down value at the prescribed rate depending upon the classification of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), the block of assets shall stand reduced by moneys payable in respect of the asset so sold. Explanation 4 to Section 43(6) provides that the connotations of expression moneys payable for this purpose will be same as provided by Explanation below Section 41(4). This Explanation, in turn, refers to the price at which it is sold . It is thus clear that there no occasion to adopt the fair market value for this purpose. What really matters is the price at which the asset is sold. As regards the judgment of Hon ble Madras High Court, in the case of Departmental Representative, we find that this decision proceeds on the significance on different expressions employed with respect to sale of asset and with respect to value of scrap. While, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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