India - Income Tax Act 2010 - Saarc

1.275 CH. IV - COMPUTATION OF BUSINESS INCOME S. 43(ii) in respect of any previous year relevant to the assessmentyear commencing on or after the 1st day of April, 1989, thewritten down value of that block of assets in the immediatelypreceding previous year as reduced by the depreciationactually allowed in respect of that block of assets in relationto the said preceding previous year and as further adjustedby the increase or the reduction referred to in item (i).]Explanation 1.—When in a case of succession in business or profession,an assessment is made on the successor under sub-section (2) ofsection 170 the written down value of 1 [any asset or any block ofassets] shall be the amount which would have been taken as itswritten down value if the assessment had been made directly on theperson succeeded to.2[Explanation 2.—Where in any previous year, any block of assets istransferred,—(a) by a holding company to its subsidiary company or by asubsidiary company to its holding company and the conditions ofclause (iv) or, as the case may be, of clause (v) of section 47 aresatisfied; or(b) by the amalgamating company to the amalgamated company ina scheme of amalgamation, and the amalgamated company is anIndian company,then, notwithstanding anything contained in clause (1), the actual costof the block of assets in the case of the transferee-company or theamalgamated company, as the case may be, shall be the written downvalue of the block of assets as in the case of the transferor-companyor the amalgamating company for the immediately preceding previousyear as reduced by the amount of depreciation actually allowedin relation to the said preceding previous year.]3[Explanation 2A.—Where in any previous year, any asset formingpart of a block of assets is transferred by a demerged company to theresulting company, then, notwithstanding anything contained inclause (1), the written down value of the block of assets of thedemerged company for the immediately preceding previous yearshall be reduced by the 4 [written down value of the assets] transferredto the resulting company pursuant to the demerger.Explanation 2B.—Where in a previous year, any asset forming part ofa block of assets is transferred by a demerged company to theresulting company, then, notwithstanding anything contained in1. Substituted for “any asset” by the Taxation Laws (Amendment & Miscellaneous Provisions)Act, 1986, w.e.f. 1-4-1988.2. Substituted for Explanation 2 and Explanation 2A, ibid. Prior to their substitution,Explanation 2 was substituted by the Finance Act, 1965, w.e.f. 1-4-1965 and Explanation2A was inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.3. Explanation 2A, Explanation 2B and proviso thereof inserted by the Finance Act, 1999,w.e.f. 1-4-2000.4. Substituted for “book value of the assets” by the Finance Act, 2000, w.e.f. 1-4-2000.