Commissioner Of Income Tax v. Lonawalla Khandalla Electric Supply Company Limited

S.K. Desai, J.

1. The question referred to us is as under:

"Whether, on the facts and in the circumstances of the case, it was rightly held that the written down value of the assessees assets acquired prior to 1-4-1961 and the actual cost thereof should be taken as per the provisions of the Indian Income-tax Act, 1922, and not as per the provisions of the Income-tax Act, 1961"

Advocates have agreed that as far as this Court is concerned, the answer to be given is concluded by its decision in the case of CIT v. Bassein Electric Supply Co. Ltd. : [1979] 118 ITR 884 (Bom.). We have, accordingly, been invited to answer the question in accordance with the said decision, without further discussion, factual or legal. Accordingly, we answer the question referred to us as under:

2. The depreciation to be allowed to an assessee for any assessment year after the coming into force of the Income-tax Act, 1961 ( the) even in respect of assets acquired by the assessee before 1-4-1961 has to be determined by reference to the written down value of the assessees assets and the actual cost thereof, as determined in accordance with the provisions of section 43(1) and 43(6) of the Act, and not the provisions of the Indian Income-tax Act, 1922. Parties to bear their own costs of the reference.