(6)"written down value" means-(a)in the case of assets acquired in the previous year, the actual cost to the assessee;(b)in the case of assets acquired before the previous year, the actual cost to the assessee less all depreciation actually allowed to him under this Act, or under the Indian Income-tax Act, 1922 (11 of 1922), or any Act repealed by that Act, or under any executive orders issued when the Indian Income-tax Act, 1886 (2 of 1886), was in force:[Provided that in determining the written down value in respect of buildings, machinery or plant for the purposes of clause (ii) of sub-section (1) of section 32, "depreciation actually allowed" shall not include depreciation allowed under sub-clauses (a), (b) and (c) of clause (vi) of sub-section (2) of section 10 of the Indian Income-tax Act, 1922 (11 of 1922), where such depreciation was not deductible in determining the written down value for the purposes of the said clause (vi);] [ Inserted by Act 15 of 1965, Section 6 (w.r.e.f. 1.4.1962).](c)[ in the case of any block of assets,- [ Inserted by Act 46 of 1986, Section 8 (w.e.f. 1.4.1988).](i)in respect of any previous year relevant to the assessment year commencing on the 1st day of April, 1988, the aggregate of the written down values of all the assets falling within that block of assets at the beginning of the previous year and adjusted,-(A)by the increase by the actual cost of any asset falling within that block, acquired during the previous year;(B)by the reduction of the moneys payable in respect of any asset falling within that block, which is sold or discarded or demolished or destroyed during that previous year together with the amount of the scrap value, if any, so, however, that the amount of such reduction does not exceed the written down value as so increased; and](C)[ in the case of a slump sale, decrease by the actual cost of the asset falling within that block as reduced- [ Inserted by Act 27 of 1999, Section 26 (w.e.f. 1.4.2000).](a)by the amount of depreciation actually allowed to him under this Act or under the corresponding provisions of the Indian Income-tax Act, 1922 (11 of 1922) in respect of any previous year relevant to the assessment year commencing before the 1st day of April, 1988; and(b)by the amount of depreciation that would have been allowable to the assessee for any assessment year commencing on or after the 1st day of April, 1988 as if the asset was the only asset in the relevant block of assets, so, however, that the amount of such decrease does not exceed the written down value;](ii)[ in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 1989, the written down value of that block of assets in the immediately preceding previous year as reduced by the depreciation actually allowed in respect of that block of assets in relation to the said preceding previous year and as further adjusted by the increase or the reduction referred to in item (i).] [ Inserted by Act 46 of 1986, Section 8 (w.e.f. 1.4.1988).]Explanation 1. - When in a case of succession in business or profession, an assessment is made on the successor under sub-section (2) of section 170 the written down value of [any asset or any block of assets] [ Substituted by Act 46 of 1986, Section 8, for " any asset" (w.e.f. 1.4.1988).] shall be the amount which would have been taken as its written down value if the assessment had been made directly on the person succeeded to.[Explanation 2. - Where in any previous year, any block of assets is transferred,-(a)by a holding company to its subsidiary company or by a subsidiary company to its holding company and the conditions of clause (iv) or, as the case may be, of clause (v) of section 47 are satisfied; or(b)by the amalgamating company to the amalgamated company in a scheme of amalgamation, and the amalgamated company is an Indian company, then, notwithstanding anything contained in clause (1), the actual cost of the block of assets in the case of the transferee-company or the amalgamated company, as the case may be, shall be the written down value of the block of assets as in the case of the transferor-company or the amalgamating company for the immediately preceding previous year as reduced by the amount of depreciation actually allowed in relation to the said preceding previous year.][Explanation 2-A.-Where in any previous year, any asset forming part of a block of assets is transferred by a demerged company to the resulting company, then, notwithstanding anything contained in clause (1), the written down value of the block of assets of the demerged company for the immediately preceding previous year shall be reduced by the ] [Inserted by Act 27 of 1999, Section 26 (w.e.f. 1.4.2000).][written down value of the assets] [ Substituted by Act 10 of 2000, Section 19, for certain words (w.e.f. 1.4.2000).][transferred to the resulting company pursuant to the demerger.Explanation 2-B.-Where in a previous year, any asset forming part of a block of assets is transferred by a demerged company to the resulting company, then, notwithstanding anything contained in clause (1), the written down value of the block of assets in the case of the resulting company shall be the ] [Inserted by Act 27 of 1999, Section 26 (w.e.f. 1.4.2000).][written down value of the transferred assets [* * *] [Substituted by Act 10 of 2000, Section 19, for certain words (w.e.f. 1.4.2000).][ Substituted by Act 46 of 1986, Section 8, for Explanation 2 (w.e.f. 1.4.1988).] of the demerged company immediately before the demerger.[* * *] [ Proviso omitted by Act 10 of 2000, Section 19 (w.e.f. 1.4.2000).]Explanation 3. -Any allowance in respect of any depreciation carried forward under sub-section (2) of section 32 shall be deemed to be depreciation "actually allowed".[Explanation 4. -For the purposes of this clause, the expressions "moneys payable" and "sold" shall have the same meanings as in the Explanation below sub-section (4) of section 41.] [ Inserted by Act 46 of 1986, Section 8 (w.e.f. 1.4.1988).][Explanation 5. - Where in a previous year, any asset forming part of a block of assets is transferred by a recognised stock exchange in India to a company under a scheme for corporatisation approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the written down value of the block of assets in the case of such company shall be the written down value of the transferred assets immediately before such transfer. ] [ Inserted by Act 14 of 2001, Section 26 (w.e.f. 1.4.2002).][Explanation 6. - Where an assessee was not required to compute his total income for the purposes of this Act for any previous year or years preceding the previous year relevant to the assessment year under consideration,-(a)the actual cost of an asset shall be adjusted by the amount attributable to the revaluation of such asset, if any, in the books of account;(b)the total amount of depreciation on such asset, provided in the books of account of the assessee in respect of such previous year or years preceding the previous year relevant to the assessment year under consideration shall be deemed to be the depreciation actually allowed under this Act for the purposes of this clause; and(c)the depreciation actually allowed under clause (b) shall be adjusted by the amount of depreciation attributable to such revaluation of the asset. ][Explanation 7. - For the purposes of this clause, where the income of an assessee is derived, in part from agriculture and in part from business chargeable to income-tax under the head "Profits and gains of business or profession", for computing the written down value of assets acquired before the previous year, the total amount of depreciation shall be computed as if the entire income is derived from the business of the assessee under the head "Profits and gains of business or profession" and the depreciation so computed shall be deemed to be the depreciation actually allowed under this Act.] [ Inserted by Act 33 of 2009, Section 17 (w.e.f. 1.4.2010).]
