The Assessing Officer and CIT(A) held that forfeited amount on cancellation of agreement has to be reduced from the purchase value and depreciation was allowed on the after reducing the forfeited amount. On appeal the Tribunal held that the agreement being dubious the CIT(A) is justified in reducing from the WDV of assets. (AY. 2009-10)
Dy. CIT v. Supreme Industries Ltd. (2021) 197 DTR 241 (Mum.)(Trib.)
S. 43(6) : Written down value-Depreciation-Forfeited on cancellation of agreement for sale of assets-Dubious transaction-Rightly reduced from the WDV of assets. [S. 32, 51, 56(2)(ix)]