| Case ID |
09d61ea4-0f6c-4543-aeb0-e7d51daa035e |
| Body |
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| Case Number |
IT REFERENCE Nos. 89, 90 AND 91 OF 1977 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court ruled that the assessee was entitled to depreciation allowances under section 32 in respect of assets purchased in earlier years and continued to be utilized for scientific research. The court clarified that section 32 is not subject to any other allowance provided in the Act and that the prohibition only applies to the grant of depreciation in the same previous year in which an allowance under section 35 is given. The tribunal's decision to grant depreciation was upheld, confirming that there is no restriction regarding assets for which capital expenditure was incurred after April 1, 1967. |
| Summary |
This case revolves around the interpretation of sections of the Income-tax Act, particularly regarding the allowance of depreciation for assets used in scientific research. The Karnataka High Court addressed whether capital assets purchased and utilized for scientific research qualify for depreciation allowances under section 32 in years subsequent to their purchase. The court ruled in favor of the assessee, emphasizing that the relevant sections do not impose restrictions on claiming depreciation for such assets. This decision is crucial for businesses engaged in scientific research, ensuring they can benefit from depreciation allowances even after claiming initial deductions under section 35(2)(ia). The case highlights the importance of understanding tax laws related to capital expenditures and depreciation, providing clarity for future assessments. Keywords: Income-tax Act, depreciation allowance, capital expenditure, scientific research, Karnataka High Court. |
| Court |
Karnataka High Court
|
| Entities Involved |
Commissioner of Income Tax,
Indian Telephone Industries Ltd.
|
| Judges |
M.K. Srinivasa Iyengar,
M. Rama Jois
|
| Lawyers |
S.R. Rajasekhara Murthy for the Applicant,
G. Sarangan for the Respondent
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Indian Telephone Industries Ltd.
|
| Citations |
1980 SLD 1200,
(1980) 126 ITR 548
|
| Other Citations |
ITO v. Vickers Sperry of India [1980] 3 Taxman 180
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
32,
35(2),
43
|