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TMI Blog2017 (8) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... e written down value of the block of assets which includes the assets belonging to the amalgamating company on which depreciation was first taken in the assessment year 1989-90 cannot be disturbed for the subject year unless the written down value of the earlier assessment years is modified. This modification of the written down value would go back to the assessment year 1989-90 when the amalgamation took place and the unabsorbed depreciation was added to the assets of the amalgamating company to determine the written down value of the block of assets. So far as the written down value of the block of assets for assessment year 1989-90 is concerned the inclusion of unabsorbed depreciation into the assets of amalgamating company is now fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 56,75,046/- on account of withholding of tax in respect of technical services rendered to foreign Company ? (3) Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was legally justified in upholding the deletion of the addition of ₹ 6,93,176/- on account of payment made to various Institutions/Schools? (4) Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was legally justified in upholding the deletion of the addition of ₹ 60,69,769/- on account of depreciation in respect of assets of erstwhile J.G. Glass Limited? 3. Regarding question no.(1) : (a) It is an agreed position between the parties that the issue arising herein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the CIT (Appeals) which directed the Assessing Officer to allow the depreciation on increased value of assets being unabsorbed depreciation of the amalgamating company JG Glass Ltd. which had amalgamated into the respondentassessee. The impugned order while upholding the order of the CIT (Appeals) placed reliance upon its order dated 29.03.1996 passed in respect of the same respondentassessee for the assessment year 1989-90 in ITA No.397- Nag/94. (b) The order dated 29.03.1996 passed by the Tribunal related to assessment year 1989-90 upheld the stand of the respondent-assessee on merits by holding unabsorbed depreciation of the amalgamating company M/s JG Glass Ltd. was to be included in the written down value of its assets at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39/98 as reproduced hereinabove in the affirmative i.e. in favour of the respondent-assessee and against the appellant-revenue i.e. the exercise of power under Section 263 of the Act by the Commissioner was not called for. In the above view, the other questions which were on merits of the claim for inclusion of unabsorbed depreciation in the value assets belonging to amalgamating company at the time of amalgamation was not considered. In the above circumstances, the order of the Assessing Officer for the assessment year 1989-90 stood undisturbed. (e) In this appeal the revenue's grievance is allowing of depreciation on the increased value of the respondent assessee's block of assets which includes the unabsorbed depreciation of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .... (c) in the case of any block of assets- (i) In respect of any previous year relevant to the assessment year commencing on the 1st day of April, 1988, the aggregate of the written down value of the assets falling within that block of assets at the beginning of the previous yar and adjusted- (A) by the increase by the actual cost of any asset falling within that block, acquired during the previous year; (B) by the reduction of the moneys payable in respect of any asset falling within that block, which is sold or discarded or demolished or destroyed during that previous year together with the amount of the scrap value, if any, so, however, that the amount of such reduction does not exceed the written down value as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets. (g) However, so far as the written down value of the block of assets for assessment year 1989-90 is concerned the inclusion of unabsorbed depreciation into the assets of amalgamating company is now final in favour of respondentassessee by virtue of our dated 10.07.2017 in ITR No.39/1998. Therefore, for all the subsequent years after assessment year 1989-90 depreciation is actually allowed in respect of the written down value of block of assets in accord with Section 32 read with Section 43(6) of the Act. Thus question No.(4) in the present facts do not give any rise to any substantial question of law as the position is self evident on reading of the definition of written down value under Section 43(6) of the Act for the purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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