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Depreciation u/s 32 was allowable on actual cost of assets taken over from dissolved firm
Case Law Details
- Case Name
- Sundaram Spinning Mills (P) Ltd. Vs CIT (Madras High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Madras High Court
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Sundaram Spinning Mills (P) Ltd. Vs CIT (Madras High Court)
Conclusion: Depreciation claim under Section 32 was allowable on actual cost of assets which the assessee paid to the erstwhile partners for taking over from a dissolved firm. It did not matter if the partners were from the same family, as the Act did not make any such distinction.
Held: Assessee, was incorporated and became a partner in a firm, holding a 25% share. The other two partners held 37.5% each. On 31.03.1984, the firm was dissolved, and assessee took over all assets and liabilities as per the balance sheet. The deed also r...
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