| Case ID |
21259fd4-d81e-499d-af47-dc8e93489e4c |
| Body |
View case body. Login to View |
| Case Number |
MISC. CIVIL CASE No. 207 OF 1980 |
| Decision Date |
|
| Hearing Date |
|
| Decision |
The Tribunal held that the Income Tax Officer (ITO) could not tax the difference between the sale price and the written down value of the asset under section 41(2) of the Income-tax Act, 1961. The burden of proof was on the department to establish that depreciation had been allowed in previous years, which they failed to do. The expression 'written down value' is defined in section 43(6), and even if it were to be interpreted to include implied depreciation, there was no evidence to support such a claim. The Tribunal's decision was in favor of the assessee, confirming that no depreciation was deemed to have been allowed for the truck in question. |
| Summary |
This case revolves around the taxation of profits from the sale of a truck by the assessee, who had not received any depreciation on the asset in prior years. The Income Tax Officer had calculated a written down value lower than the sale price and sought to tax the difference under section 41(2) of the Income-tax Act, 1961. However, the Tribunal ruled in favor of the assessee, emphasizing that the burden of proof lies with the tax authorities to show that depreciation had been allowed previously. The case highlights the importance of maintaining accurate records and evidence in tax assessments. Keywords: Income-tax Act, depreciation, taxation, written down value, legal precedent, Tribunal decision, asset sale. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Not available
|
| Judges |
G.P. Singh, C.J.,
K.K. Adhikari, J.
|
| Lawyers |
B.K. Rawat for the Applicant,
B.L. Nema for the Respondent
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Dr. Kishanchand
|
| Citations |
1983 SLD 1036 = (1983) 144 ITR 1
|
| Other Citations |
Kanshi Ram Wadhwa v. CIT [1982] 138 ITR 830 (Punj. & Har.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
41(2),
43(6)
|