[aaykarbhavan] WDV of assets of local authority won’t be re-calculated on its conversion into taxable unit; book dep. is relevant

WDV of assets of local authority won't be re-calculated on its conversion into taxable unit; book dep. is relevant

July 16, 2014[2014] 46 taxmann.com 123 (Hyderabad - Trib.)

IT : Where assessee was enjoying exemption of income being a local authority, and with insertion of Explanation to section 10(20) by Finance Act, 2002 effective from 1-4-2003, assessee became taxable entity from assessment year 2003-04 in terms of Explanation 6 to section 43(6), amount of depreciation provided in books of account upto previous year relevant to assessment year under consideration had to be considered as depreciation 'actually allowed' and, therefore, in order to restrict claim of depreciation, entire exercise of re-determining WDV from year of inception till assessment year 2002-03 could not be upheld

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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