Technova Imaging Systems Limited Vs DCIT (Bombay High Court)
Bombay High Court held that amalgamated company not having obtained approval of Central Government is entitled to adjust the Written Down Value [WDV] of the assets of amalgamating companies and claim depreciation on such adjusted written down value.
Facts- The present appeal is preferred u/s. 260A of the Income Tax Act against the order of ITAT. The substantial question of law involved herein is whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that in view of insertion of section 72A in the Income-tax Act, 1961, the appellant (being the amalgamated company) not having obtained approval of the Central Government was not entitled to adjust the written down value of the assets of the amalgamating companies on the basis depreciation actually allowed to them and to claim depreciation on such adjusted written down value of the assets of the amalgamating companies?
Conclusion- Held that the Tribunal was not justified in law in holding that in view of insertion of Section 72A in the Income Tax Act, 1961, the appellant (being the amalgamated company) not having obtained approval of the Central Government was not entitled to adjust the written down value of the assets of the amalgamating companies on the basis of depreciation actually allowed to them and to claim depreciation on such adjusted written down value of the assets of the amalgamating companies.
