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TMI Blog1970 (12) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the net income from this truck at Rs. 2,000. He observed that since net profit was being fixed, there was no question of allowing depreciation on the truck separately. At the same time the Income-tax Officer made calculation for ascertaining the written down value of the truck. According to the calculation, the written down value for the assessment year 1962-63 came to Rs. 13,360, and depreciation at the rate of 25 per cent. came to Rs. 3,340. The assessee claimed deduction on account of depreciation at the figure of Rs. 7,500 on the basis of the cost price of the truck (Rs. 30,000). The assessee's claim on this point was not accepted by the Appellate Assistant Commissioner. But, the Appellate Tribunal accepted the assessee's claim on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 10(2)(vi) and (via). The provision of section 43(6)(b) of the Income-tax Act, 1961, is similar to the provision of section 10(5)(b) of the Indian Income-tax Act, 1922. So, the principle laid down by the Andhra Pradesh High Court in Vankadam Lakshminarayana's case will govern the present case also. Annexure " E " to the statement of the case is a copy of the Appellate Tribunal's order dated April 12, 1964. After referring to the decision of the Andhra Pradesh High Court the Tribunal observed that the principle of the case applies with equal force to the facts of the present case. It, therefore, appears that, according to the finding of the Tribunal, no depreciation was actually allowed in the present case in earlier assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pur Leather Co. Ltd., it was held by the Supreme Court that the words " actually allowed " in section 10(5)(b) of the Indian Income-tax Act, 1922, did not include any notional allowance. As explained above, the same principle should govern the interpretation of section 43(6)(b) of the Income-tax Act, 1961. In the present case notional allowance for depreciation appears to have been allowed to the assessee for the earliar assessment years 1959-60, 1960-61 and 1961-62. For none of these three years was any deduction actually allowed on account of depreciation. Consequently, there is no room for any deduction from the cost price as contemplated by clause (b) of sub-section (6) of section 43 of the Act. The written down value for the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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