Dismissing the appeal of the Revenue the Court held that when the assets and liabilities are taken over from the partnership firm the assessee will be entitled to claim depreciation in respect of any assets on actual cost of said assets. The actual cost of said assets will be actual cost which assessee paid to predecessor after revaluing assets and the assessee will be entitle to depreciation for subsequent years on basis of actual cost paid. (AY. 2009-10)
PCIT v. Dharmanandan Diamonds (P.) Ltd. (2023) 294 Taxman 29 /(2024)467 ITR 26 (Bom.)(HC)/Editorial :SLP of Revenue is dismissed , PCIT v. Dharmanandan Diamonds Pvt. Ltd. (2024)467 ITR 31/ 64 300 Taxman 95 (SC)
S. 32 : Depreciation-Revaluation-Actual cost – Taken over assets and liabilities of the firm-Actual cost of assets will be actual cost which assessee paid to predecessor after revaluing assets-Entitled to claim depreciation for subsequent years on basis of actual cost paid. [S. 43(1), Proviso ,260AR. 5]