Depreciation

Last updated: 15 December 2007

Court :
HC

Brief :
Held by the Hon`ble Bench that as per sections 80AB and 80B the primary step for calculating the profits and gains is to determine the gross total income as per the provisions of the Act except giving effect to deductions under chapter VI-A, thereafter to compute the profit and gains of the Industrial Undertaking. Hence it is compulsory for the assessee to claim the deduction of depreciation under section 32 otherwise the claim for deduction would result in deduction of higher amount than the assessee is entitled to.

Citation :
Vahid Paper Converters Vs. Income Tax Officer

Depreciation u/s 32 Vahid Paper Converters Vs. Income Tax Officer 11/09/2005 [2007] 289 ITR (AT) 10 (Ahemdabad) [SB] Case Fact: Whether is it compulsory to claim depreciation for computation of profits and gains of Industrial Undertaking forming part of GTI u/s 80AB and 80B for the purpose of special deductions/s 80HH, 80-IA and 80-IB of the Income Tax Act, 1961? Decision: Held by the Hon`ble Bench that as per sections 80AB and 80B the primary step for calculating the profits and gains is to determine the gross total income as per the provisions of the Act except giving effect to deductions under chapter VI-A, thereafter to compute the profit and gains of the Industrial Undertaking. Hence it is compulsory for the assessee to claim the deduction of depreciation under section 32 otherwise the claim for deduction would result in deduction of higher amount than the assessee is entitled to.