Assessee took over assets and liabilities of a company incorporated by Government of Uttar Pradesh, namely, UPJVNL during its demerger. Assessee claimed depreciation on WDV of such assets. Assessing Officer disallowed same on ground that assessee had taken over assets without corresponding any liability i.e. assets were taken over by UJVNL from UPJVNL free of cost. On appeal the Tribunal held that demerger led to division of assets in a fixed ratio which was duly accounted for by both entities as per WDV and that there was no twice claim of depreciation on said assets by both companies. Entitled to depreciation on WDV of said assets took over by it.  (AY. 2014-15)