THE MAHALAXMI MILLS LTD. vs THE COMMISSIONER OF INCOME-TAX,BOMBAY(And connected appeal

The Supreme Court interpreted Section 13(5)(b) of the Saurashtra Income-tax Ordinance, 1949, holding that the phrase 'which would have been allowed to him' refers to depreciation that should have been claimed if the Indian Income-tax Act, 1922 had been applicable. The Court ruled that the Income-tax Officer was correct in deducting depreciation that would have been allowable under the Indian Income-tax Act, despite no claim being made. The Court also clarified that the provisions of the Taxation Laws (Part B States) (Removal of Difficulties) Order, 1950, were applicable in computing written down value, thus affirming the assessment made by the Income-tax Officer for the assessment year 1951-52.