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TMI Blog1977 (11) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... except for the assessment year 1940-41, 1941-42 and 1948-49, for which it was held to be a resident and ordinarily resident-company. The assessee was charged to tax in respect of the assessment year 1948-49 in respect of remittances made for purchase of stores and income from interest on securities. In respect of the said assessment year 1948-49, the assessment was challenged and the income in respect of remittances which was originally brought to tax was deleted. The assessee, however, did not challenge its status by filing any second appeal and thus the income liable to tax under the Indian Income-tax Act, 1922, was income falling under section 4(1)(a) and section 4(1)(c) read with section 42 of the Indian Income-tax Act, 1922. Now, for d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arriving at the written down value, only such depreciation should be deducted as had been actually allowed in making the assessment in the past under the Indian Income-tax Act, 1922. The Tribunal had finally accepted the alternative contention of the assessee. This decision was in respect of the assessment years 1950-51, 1951-52 and 1952-53. The matter came to this court in a reference and this court took the view that in the case of the assessee, only that part of the depreciation as had entered into the computation of the income liable to tax under the Indian Income-tax Act, can be taken into account to determine the written down value of the business assets under section 10(5)(b) of the Act and not the full depreciation calculated in det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Rules of 1927 have been made for the levy of the tax and for the ascertainment and determination of the income of cotton mills or whether it is any law relating to tax on profits of business or rules of Part B States relating to income-tax or super-tax within the meaning of rule 2 of the Taxation Laws (Part B States) (Removal of Difficulties) Order, 1950. Before the Tribunal a contention regarding the validity of the Taxation Laws (Part B States) (Removal of Difficulties) Order, 1950, was raised on several grounds. The Tribunal followed the decision of the Supreme Court in Commissioner of Income-tax v. Dewan Bahadur Ramgopal Mills Ltd. [1961] 41 ITR 280 and rejected the contention of the assessee. The other contention raised before the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... written down value for subsequent years be arrived at by reducing the block, i.e., assets by depreciation on such written down value ? (2) Whether, in view of the facts and circumstances, that the mill-company has been charged to tax for the income-tax assessment years 1938-39 to 1949-50 under the status of ' non-resident ' except for the assessment years 1940-41, 1941-42 and 1948-49, the provisions of paragraph 2 of the Taxation Laws (Part B States) (Removal of Difficulties) Order, 1950, could be invoked ? (3) Whether the provisions of paragraph 2 of the Taxation Laws (Part B States) (Removal of Difficulties) Order, 1950, apply and were correctly applied to the facts of the case ? (4) Whether in view of the facts and circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the decision of the Supreme Court in Hukumchand Mills Ltd. v. Commissioner of Income-tax [1967] 63 ITR 232, as also other considerations set out by the Tribunal in its order. Questions Nos. 1, 2 and 3, therefore, need not be answered. It is also fairly stated by Mr. Vyas that the controversy raised in question No. 5 is also decided by the Supreme Court against the assessee in Travancore-Cochin Chemicals Ltd. v. Commissioner of Income-tax [1977] 106 ITR 900. In that case, the Supreme Court has held that by having a new road constructed for the improvement of transport facilities, the assessee had acquired an enduring advantage for its business and the expenditure incurred by the assessee was of a capital nature. In view of this decision, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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