Tribunal held that under section 43(6) of the Income-tax Act, 1961 the written down value of the block of assets was to be reduced by the sale proceeds received on sale of one or more of the assets from the block and not the entire written down value of the assets. Therefore, the Assessing Officer was to reduce only the sale proceeds of Rs. 26,782 from the written down value of the block of the assets and allow the depreciation on the balance of the written down value.(AY. 2004-05)
Shakti Hormann Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 515 (Hyd.)(Trib.)
S. 43(6) : Written down value-Depreciation-Block of assets-Assessing Officer to reduce only sale proceeds from written down value of block of assets and allow depreciation on balance of written down value. [S. 2(11), 45, 50]