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PETITIONER: THE MAHALAXMI MILLS LTD.
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX,BOMBAY(And connected appeals)
DATE OF JUDGMENT: 08/04/1960
BENCH:
ACT: Income Tax-Depreciation-Computation of written down value- Deduction of depreciation in earlier years-Scope-Saurashtra Income Tax Ordinance, 1949, s. 13(5) (b)-Taxation Laws (Part B States) (Removal of Difficulties) Order, 1950, para 2- Indian Income Tax Act, 1922 (11 of 1922), s. 10(5) (b).
HEADNOTE: The assessees were carrying on business in Bhavnagar which was formerly an Indian State. In 1948 Bhavnagar became part of the United State of Saurashtra and on March 16, 1949 the Saurashtra Income-tax Ordinance was promulgated. For the purpose of calculating the depreciation allowance to which the assessees were entitled in computing the profits or gains of the business, the written down value of the building, machinery etc., had to be ascertained in accordance with the provisions of the Ordinance. Section 13(5) (b) of the Ordinance provided that "the written down value meant, in the case of assets acquired before the previous year, the actual cost to the assessee less all depreciation actually allowed to him under this Ordinance or......... which would have been allowed to him if the Indian Income-tax (1) A.I.R 217 Act, 1922, was in force in the past". For the assessment year 1949-50, a...