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TMI Blog1977 (12) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner under s. 27(1) of the W. T. Act, 1957. " Whether the Tribunal was justified in allowing the assessee's claim for deduction on account of accumulated depreciation not written off in the books for the purpose of computing net wealth under s. 7 of the W. T. Act ? " A few facts may be stated. We are concerned in this reference with assessment year 1957-58, the valuation date be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iation due to losses cannot result in increase in the wealth of the company. He found that, as a matter of fact, the assets were not fully depreciated and accordingly observed that it could not be denied that the assets appeared in the balance-sheet at inflated figures. He then considered what adjustment was required to be made and held that, in the circumstances, it would be reasonable to take th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ument, counsel for the revenue urged that where the assessee had not written down the value of the assets in its books, the value in the books should be taken for wealth-tax purposes and both the AAC and the Tribunal were not justified in allowing any adjustment for depreciation either fully on partially as has been done in the case. It was further submitted that the method and the manner in which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y depreciated as this was a mere automatic application of the I. T. Rules and Schedule, which is not permissible. The Tribunal has revised this adjustment to some extent in favour of the department by allowing depreciation at normal rates but excluding double depreciation as included earlier. They have to a certain extent attempted to arrive at the proper adjustment to be allowed to the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that effect by the AAC. This finding is not challenged and proceeding upon that finding, the Tribunal has merely modified the adjustment originally allowed by the AAC. The method adopted by the Tribunal may not be fully justified, but since it is not required to be considered in answering the question referred to us, we express no final opinion about it in this reference. In the result, the que ..... X X X X Extracts X X X X X X X X Extracts X X X X
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