9911796707
TMI Blog2005 (1) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... s so sold is not ascertainable and is very old; the assessing authority was fully justified in treating the entire sale proceeds as profit chargeable to tax. It is upon the respondent-assessee to show by cogent material the written down value of the depreciable assets which have been sold. Having failed to do so, the Tribunal ought to have applied the provisions of section 41(2) - - - - - Dated:- 20-1-2005 - Judge(s) : R. K. AGRAWAL., PRAKASH KRISHNA. JUDGMENT The Income-tax Appellate Tribunal, Allahabad has referred the following question under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the opinion to this court: "Whether, on the facts and in the circumstances of the case, the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner of Income-tax (Appeals) who following his earlier order for the assessment year 1973-74 had held that addition may be limited to 50 per cent, of the receipt. Feeling aggrieved the respondent-assessee preferred a further appeal before the Tribunal. The Tribunal after considering the pleas raised by the respective parties had held that the profit under section 41(2) may be taken at nil and the written down value of the remaining block of the assets be reduced by the amount received by the sale of the assets. The Tribunal has dealt with the issue in paragraph 6 of its order which is reproduced below: "We have considered the rival submissions. We have also gone through the Tribunal's order relating to the assessment year 1973-7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l submitted that there is no legal backing in respect of the approach adopted by the Tribunal in directing to reduce the value of the assets by the amount of the sale proceeds. According to him there is no equity in tax matters and therefore the middle path adopted by the Tribunal was not warranted. He further submitted that if difference in the amount of sale price and written down value is to be treated as profit under section 41(2) of the Act, the Tribunal ought to have decided the appeal in the light of section 41(2) of the Act and not otherwise. Shri R. S. Agrawal, learned counsel submitted that as the written down value of the assets sold was not ascertainable the approach of the Tribunal in directing for reducing the value of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
