COMMISSIONER OF INCOME-TAX, MADHYA PRADESH vs M/S. NANDLAL BHANDARI MILLS LTD.

The Supreme Court interpreted the Taxation Laws (Part B States) (Removal of Difficulties) Order, 1950, specifically the proviso to paragraph 2, which addresses the computation of depreciation for non-resident companies. The Court held that the term 'assessment' in the proviso encompasses the total depreciation allowed, regardless of the fraction of total world income treated as taxable. Consequently, the High Court's decision to limit depreciation to a proportionate amount based on taxable income was overturned, affirming that the full depreciation allowed under the Indian Income-tax Act must be considered for written down value calculations.