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TMI Blog1972 (11) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by GOVINDAN NAIR J.- The Income-tax Appellate Tribunal, Cochin Bench, at the instance of the Commissioner of Income-tax, Kerala, has drawn up a statement of the case and referred the following questions of law to this court : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the initial depreciation of Rs. 1,01,814 was not to be deducted for the purpose of computing the written down value for computing the profits under section 10(2)(vii) of the Income-tax Act, 1922? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in applying the provisions contained in sec tion 10(5)(b) instead of section 10(5)(c) ? " The year of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above) by Rs. 87,194. Under the proviso to section 10(2)(vii) of the Income-tax Act, 1922 (hereinafter referred to as " the Act "), this sum of Rs. 87,194 was added as the profit of the assessee. The department contended in appeal that the written down value must be taken not at Rs. 6,02,115 but at Rs, 6,02,115 minus Rs. 1,01,814, the initial depreciation allowed to the original Hindu undivided family. This contention was negatived by the Appellate Assistant Comniissioner and in further appeal before the Tribunal. Written down value has been defined for the purposes of sub-section (2) of section 10 of the Act in sub-section (5) of section 10. The relevant part of that definition for our purposes is contained in clauses (b) and (c) of sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a Hindu undivided family taking property on partition of the family can be said to inherit the property from the original family. Inheritance may have a wider significance than intestate succession to property. In Black's Law Dictionary, it is stated that : " Though 'inheritance ' in its restricted sense means something obtained through laws of descent and distribution from an intestate, in its popular use, it includes property obtained by devise or descent. " The Shorter Oxford English Dictionary gives the meaning of the word inheritance " in the manner : " Inheritance...... being admitted as heir etc ......: 1. The action or fact of inheriting. Hereditary succession to property, a title, etc. ; a perpetual or continuing right t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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