Depreciation u/s 32 was allowable on actual cost of assets taken over from dissolved firm

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...