9911796707
TMI Blog1931 (8) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... pur Manufacturing Company, Limited, which I will call the old company, which went into liquidation in the year 1924, and in the year 1928 its assets were sold to the assessee company, and a valuation was placed for the purposes of the sale on various assets. The only asset to which reference need be made is the machinery and plant which were valued and purchased at ₹ 16 lakhs. The question w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r class of cases be prescribed. 3. There are certain provisos to Section 10(3)(vi), and under proviso (6) an allowance to which full effect cannot be given in any one year or years may be made up in any subsequent year or years ; and then in proviso (c) it is enacted that the aggregate of all such allowances made under the Act shall in no case exceed the original cost to the assessee of the bui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgued to the contrary. But in the reference which he has submitted the Commissioner points out that a full bench of the Madras High Court in a very similar case arrived at the conclusion that the depreciation should be based on the cost of the machinery to the old vendor company. The case to which the Commissioner refers is the case of Massey Co v. The Commissioner of Income tax, Madras (1929) 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aseology and the scheme of the Indian Act seem to me to differ widely from the English Act upon this question of deduction on account of depreciation of machinery. Under the English Act depreciation is to be based on the diminished value of the machinery and plant by reason of wear and tear. There is no such thing in the Indian Act, under which deduction for depreciation is based upon a percentage ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
