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TMI Blog1968 (10) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals arising out of the wealth-tax assessment proceedings for the years 1957-58 and 1958-59. The question which the Tribunal has placed before us for decision and which is common to the two references is as follows : " Whether, on the facts and in the circumstances of the case, the initial and additional depreciation granted under sections 10(2)(vi)(a), (b), (c) and 10(2)(via) should be allowed for computing the net wealth of the assessee ?" The material facts are that the assessee carries on the business of manufacturing automatic looms for textile industry and other machinery components used in weaving and finishing processes in textile industry. In the balance-sheets of the company, valuation of assets as on the valuation date w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en by the Appellate Assistant Commissioner. Having heard learned counsel for the parties, we have reached the conclusion that the Tribunal was right in holding that the initial and additional depreciation permissible under sections 10(2)(vi)(a), (b) and (c) and 10(2)(via) of the Income-tax Act, 1922, could not be taken into account in determining the net value of the assets of the assessee under section 7(2)(a) of the Act. Under section 7(2)(a), as it stood at the material time, it is the net value of the assets of the business as a whole that has to be determined having regard to the balance-sheet of the business as on the valuation date after making such adjustment therein as the circumstances of the case may require. In ascertaining th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is initial and additional depreciation intended to give incentive to industries. It is quite independent and over and above the normal depreciation allowed on account of wear and tear of the fixed assets. It is, therefore, plain that in its very nature the depreciation spoken of in sections 10(2)(via), (b) and (c) and 10(2)(via) cannot be allowed in computing the net value of the assets under section 7(2)(a) of the Act. To us it seems that, so far as this court is concerned, the matter is really concluded by the decision of this court in Commissioner of Wealth-tax v. Swadeshi Cotton and Flour Mills Ltd. In that case the question which was referred to this court for decision was : " Whether, on the facts and circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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