| Case ID |
d88e3e64-1c95-43b3-befc-82816e676ce3 |
| Body |
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| Case Number |
MISCELLANEOUS CIVIL CASE No. 145 OF 1976 |
| Decision Date |
Aug 21, 1979 |
| Hearing Date |
|
| Decision |
The court held that the assessee was entitled to additional depreciation on the enhanced value of the assets in light of the Supreme Court's decision in Kalooram Govindram v. CIT. The Income-tax Appellate Tribunal's decision was found unjustified and the AAC's refusal to consider the additional depreciation was based on a misunderstanding of the ongoing proceedings. The case was decided in favor of the assessee, affirming their right to claim additional depreciation based on the revised valuation of the assets after accounting for depreciation. |
| Summary |
In the case of Jaora Sugar Mills (P.) Ltd. v. Commissioner of Income tax, the Madhya Pradesh High Court addressed the issue of additional depreciation under Section 32 of the Income-tax Act, 1961. The case arose from a partition suit where a sugar mill was purchased and subsequently sold to the assessee-company. The sale deed stipulated that the written down value of the assets would be determined based on the outcome of pending income-tax proceedings of the HUF for the assessment year 1950-51. The Supreme Court had previously ruled that the valuation of shares could not be based on past acquisition costs but should account for depreciation. The assessee claimed additional depreciation based on this ruling. The AAC and the Tribunal initially rejected this claim, leading to a legal challenge. The High Court ultimately ruled in favor of the assessee, affirming their entitlement to the additional depreciation based on the Supreme Court's precedent. This case underscores the importance of understanding asset valuation in tax assessments and the impact of judicial decisions on ongoing tax matters. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Jaora Sugar Mills (P.) Ltd.,
HUF of Kalooram Govindram
|
| Judges |
G.L. Oza,
R.K. Vijayvargiya
|
| Lawyers |
Lodha for the Applicant,
S.C. Bagdiya for the Respondent
|
| Petitioners |
Jaora Sugar Mills (P.) Ltd.
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1980 SLD 1015 = (1980) 124 ITR 482
|
| Other Citations |
Kalooram Govindram v. CIT [1965] 57 ITR 335 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
32
|