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December 2024

Depreciation — Actual cost — Tangible and intangible assets in case of succession — Depreciation claim on revalued assets or WDV — Depreciation claimed by the erstwhile firm on WDV and by the successor Assessee on price revalued by the Government Approved Valuer — Payment made by the Assessee to predecessor at actual cost of assets — Successor Assessee entitled to claim depreciation for subsequent year on the basis of actual cost paid — Order of the Tribunal holding the Assessee eligible to claim depreciation on revalued price of assets is not erroneous.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

61 Pr. CIT vs. Dharmanandan Diamonds Pvt. Ltd

[2024] 467 ITR 26 (Bom)

A.Y. 2009–10

Date of order: 14th June, 2023

Ss. 32 and 43(1) of ITA 1961: R. 5 of IT Rules 1962

Depreciation — Actual cost — Tangible and intangible assets in case of succession — Depreciation claim on revalued assets or WDV — Depreciation claimed by the erstwhile firm on WDV and by the successor Assessee on price revalued by the Government Approved Valuer — Payment made by the Assessee to predecessor at actual cost of assets — Successor Assessee entitled to claim depreciation for subsequent year on the basis of actual cost paid — Order of the Tribunal holding the Assessee eligible to claim depreciation on revalued price of assets is not erroneous.

The Assessee was incorporated on 31st August, 2007 and A.Y. 2008–09 was the first year of the Company. The Assessee was incorporated to take over all the assets and liabilities of a Partnership Firm (‘the Firm’) as on 1st September, 2007. Depreciation on assets was claimed by the erstwhile Firm on WDV basis up to 31st August, 2007 and by the success

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