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TMI Blog1991 (8) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... had been actually allowed for the assessment years 1979-80, 1980-81 and 1981-82 ? " The matter relates to the assessment year 1982-83 for which the accounting period ended on March 31, 1982. For this assessment year, amongst other things, the assessee claimed depreciation on motor car KRD 57. The car was purchased on November 29, 1978, for a sum of Rs. 38,256. The Agricultural Income-tax Officer fixed the written down value of the car, for the purpose of allowing depreciation for this year (1982-83), at Rs. 19,039. This was so done after deducting the depreciation value at 20. per cent. per year for the previous years from 1978-79. The depreciation amount for the previous year 1982-83 was Rs. 3,808 and 50 per cent. of the same, i.e., Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eciation of buildings, machinery, plant and furniture which are the property of the assessee and are required for the purpose of deriving the agricultural income, a sum equivalent to such percentage on the written down value thereof as may in any case or class of cases be prescribed, and where the buildings have been newly erected or the machinery or plant newly installed, a further sum subject to such conditions as may be prescribed : Provided that full particulars have been duly furnished:....... Explanation l.. . . and 'written down value' means (i) in the case of assets acquired in the previous year, the actual cost to the assessee ; and (ii) in the case of assets acquired before the previous year the actual cost to the assessee l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n force in the State prior to the commencement of the said Act." We are of the view that rule 13 of the Agricultural Income-tax Rules, 1951, has no application to the present case. The said rule provides that the written down value shall be the actual cost of the assets so acquired less all depreciation actually allowed in respect of such assets, either under the Agricultural Income-tax Act, 1950, or the corresponding Act in force prior thereto. Under section 5(1) of the Agricultural Income-tax Act, 1950, read with Explanation 1, in the case of assets acquired before the previous year, depreciation is allowed, and the basis is the actual cost to the assessee less such sum as may be prescribed. We are not invited to any rule by which any p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him. It is an admitted position that at no time prior to the assessment year 1955-56, the assessee had filed any returns or that he had claimed any depreciation and in support of it supplied any particulars or that any depreciation on the machinery had actually been allowed. It is not shown to us that it is obligatory on the assessee to claim depreciation in every year of assessment, and in the event of his failure to do so, he forfeits the claim therefor or that the cost price gets automatically reduced by the allowable amount of depreciation. That being the position, it is difficult to hold that the assessee is not entitled to claim depreciation on the basis that the cost price of the machinery, etc., was the written down value thereof f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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