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July 2009

Depreciation : Option to claim : Deduction under Chapter VI-A of I. T. Act, 1961 : A. Y. 1997 – 98 : Assessee did not claim depre-ciation for computing gross total income : Whether for the purposes of availing deduction under Chapter VI-A, gross total inc

By K. B. Bhujle
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In the High Court

K. B. Bhujle
Advocate

38. Depreciation : Option to claim : Deduction under Chapter
VI-A of I. T. Act, 1961 : A. Y. 1997 – 98 : Assessee did not claim depre-ciation
for computing gross total income :  Whether for the purposes of availing
deduction under Chapter VI-A, gross total income is required to be computed by
deducting allowable depreciation ?  : Question referred to larger Bench.

[Plastiblends India Ltd. vs. Add. CIT, 223 CTR 291 (Bom.)]

In view of the contrary decisions in the case of Grasim
Industries Ltd. vs. ACIT 245 ITR 677 (Bom) and Scoop Industries (P)
Ltd. vs. ITO 289 ITR 195 (Bom) the following question has been referred
to the Larger Bench :

"Whether for the purposes of availing allowable special
deduction under Chapter VI-A, the gross total income is required to be
computed by deducting allowable depreciation even though the assessee has
disclaimed the same for the purposes of regular assessment ? ".

 

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