- (1.) This appeal is directed against the order of the CIT(A), Calcutta.
(2.) Though the assessee- company raised 11 grounds, only one issue was contested before us i.e., with regard to the quantum of depreciation to be taken into consideration for the purpose of arriving at the 'book profit' as per s. 115J of the Act.
(3.) We are concerned with the asst. yr. 1989-90. This being a transitional previous year, accounting year of the assessee commences on 1st Nov., 1987, and ends on 31st March, 1989. For the purpose of declaration of dividend, under the Companies Act, assessee followed straight line method and depreciation was provided in the books accordingly. The effective dispute in the instant case would be with regard to the method followed by the assessee in respect of the period falling after 2nd April, 1987, inasmuch as, depreciation rate under the Companies Act under straight line method is 5.15 per cent and under written down value (WDV) it is 15 per cent whereas, under the IT Act, it is 33.33 per cent under WDV method. Though the assessee showed in its books depreciation as per straight line method, for the purpose of computing the 'book profit' as per s. 115J afthe Act, the company adopted VVDV method and the depreciation was worked out as provided for under the IT Act, i.e. at 33.33 per cent. Thus higher rate of depreciation was claimed resulting in no taxable income as per s. 115J of the Act.;