COMMR.OF INCOME TAX,DIBRUGARH vs DOOM DOOMA INDIA LTD.

The Supreme Court addressed the interpretation of 'depreciation actually allowed' under Section 43(6)(b) of the Income-tax Act, 1961, determining that for the computation of 'written down value' in the context of composite income under Rule 8, only 40% of the depreciation should be deducted instead of 100%. The Court upheld the Tribunal's decision, which was based on the precedent set in Commissioner of Income-tax v. Suman Tea and Plywood Industries (P) Ltd., affirming that the approach taken by the Tribunal was correct. The appeal by the Department was dismissed, affirming the High Court's ruling.