Dismissing the appeal of the Revenue the Court held that ; The has given the finding that , going by the wording of the ground it is not permissible to apply the Expln.5 to S. 32(1) and therefore , the claim of depreciation , which was optional could not be thrust on the assessee for the prior period and the AO was not justified in allowing depreciation on the basis of written down value after allowing depreciation to the assessee in the preceding years . ( AY. 2003 -04 to 2006 -07)
CIT v. Reliance Industries Ltd ( 2018) 161 DTR 420 /( 2019) 410 ITR 468 ( Bom) (HC)Editorial: Matter remanded to High Court, CIT v. Reliance Industries Ltd ( 2019) 410 ITR 466 /175 DTR 1/ 307 CTR 121 (SC)
S. 32: Depreciation — For the prior period the revenue cannot thrust upon the depreciation on the basis of written down value , in the preceding years , if the assessee had not claimed it . [S. 32, Expl. 5, 43(6) ]