Pursuant to amalgamation sanctioned by a court of law the Bank of Thanjavur Ltd., was amalgamated with the assessee-bank. The assessee-bank claimed depreciation on assets taken over from the amalgamating bank, on the basis of the value fixed pursuant to arrangement between the assessee and the amalgamating bank. The Assessing Officer allowed depreciation on assets in accordance with the provisions of Explanation 7 to section\u00a043(1)\u00a0of the\u00a0Income-tax Act, 1961, but disallowed excess depreciation claimed by the assessee. The Commissioner (Appeals) allowed depreciation claimed by the assessee on the ground that the value of asset has been fixed by the Government of India pursuant to arrangement between the assessee\u2019s bank and the amalgamating bank, and Explanation 7 to section\u00a043(1)\u00a0of the Act had no application. On appeal, the Tribunal reversed the findings of the Commissioner (Appeals). On further appeal, the High Court set aside the order of the Tribunal in the light of arguments of the assessee that Explanation 7 to section\u00a043(1)\u00a0of the Act did not apply, because even after amalgamation, the amalgamating bank was still functioning and only part of the business of the bank was transferred. On appeal\u00a0 by the Revenue the Tribunal held that the assessee, during the course of hearing had agreed that the amalgamating bank had ceased to exist consequent upon amalgamation and the findings recorded by the Tribunal in light of provisions of Explanation 7 to section\u00a043(1)\u00a0of the Act were in accordance with law and the bank did not want to continue the litigation. There was no error in the findings given by the Tribunal in upholding the action of the Assessing Officer in allowing depreciation on assets taken over pursuant to amalgamation of amalgamating bank with the assessee and the decision rendered by the Tribunal did not call for any interference. Appeals of Revenue are allowed. (AY.1991-92 to 2002-03)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 43(1) : Actual cost-Depreciation-Amalgamation of Banks Amalgamating Bank Ceases To Exist-Tribunal Right In Allowing Depreciation On Assets Taken Over Pursuant To Amalgamation With Assessee [S. 32, 43(1), Explanation 7] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43959","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-br1","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=43959"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43959\/revisions"}],"predecessor-version":[{"id":43960,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43959\/revisions\/43960"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}