Section 7(2) in The Assam Agricultural Income-Tax Rules, 1939
(2)The expression "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 but after the commencement of the Assam Agricultural Income- tax Act, 1939, the actual cost of the assessee less all depreciation allowable to him under this rule;(c)in the ease of assets acquired before the commencement of the Assam Agricultural Income-tax Act, the actual cost to the assessee less for each financial year since the acquisition, the amount of depreciation applicable to the assets at the rate prescribed for the purposes of the Indian Income-tax Act for each such year since the 1st April, 1922 at the Income-tax rates in force on the 1st April, 1922 for each year prior to the date :Provided that for purposes of depreciation allowance in respect of assets used for deriving agricultural income defined in Section 2 (a) (1) and determinable under Section 7 of the Act, "written down value" shall mean the actual cost to the assessee less for each financial year since 1st April, 1937 the amount of depreciation applicable to assets at the rates mentioned above.Explanation. The method of calculating depreciation on the "written down value" basis instead of on the basis of the cost of the assets will come into force from the assessment for 1940-41 and does not apply to the assessment for 1939-40.
