INCOME TAX ACT, 1961

Depreciation - Rate -Higher rate of depreciation -Computation of income under section 115J

Assessee claimed depreciation in computation of quantum of income under section 115J. AO rejected assessee claim on ground that depreciation for purposes of section 115J was permissible as per Schedule XIV of Companies Act. CIT (A) allowed claim of assessee keeping in view that depreciation provided under Companies Act was minimum but there was no bar to claim higher depreciation and, thus, for purposes of section 115J, depreciation actually debited could be allowed. Held: In view of decision of Supreme Court in case of Apollo Tyres Ltd. v. CIT [2002], CIT (A) had rightly allowed depreciation claim to assessee.

Income-tax Act, 1961, Section 32

A.Y. : 1989-90
Decision: In favour of assessee.

Case Law Analysis:Apollo Tyres Ltd. v. CIT [2002] 255 ITR 273/ 122 Taxman 562 (SC) [Para 4], CIT v. DynamicOrthopedics (P.) Ltd. [2002] 257 ITR 446/124 Taxman 171 (Ker.) [Para 5], CIT v. Vandana Rolling Mills Ltd.[1998] 234 ITR 693/[1999] 102 Taxman 157 (MP) [Para 5], CIT v. Malayala Manorama Co. Ltd. [2002] 253 ITR 378/ 120 Taxman 343 (Ker.) [Para 5] and Dy. CIT v. Vardhman Fabrics (P.) Ltd. [2002] 254 ITR 431/ 122 Taxman 375 (Guj.) [Para 5].

CIT, Ludhiana v. Sona Woollen Mills (P) Ltd.