DEAR TAX EXPERTS,
I WISH TO KNOW THE TAXABILITY OF DEPRECIATION IN THE FOLLOWING CASE'
FACT.
A PARTNERSHIP FIRM REVALUED ITS FIXED ASSETS FROM 2 CRORE TO 20 CRORES (BASED ON THE VALUATION REPLACEMENT COST OF ITS OLD PLANT &ACHINERY BY THE EXPERTS)
THEBOOK VALUE OF ASSETS ARE INCREASED WITH CORRESPONDING CREDIT IN PARTNERS CAPIAL ACCOUNTS.AS ON 31.03.2010
SUBSEQUENTLY PARTNERSHIP FIRM WAS CONVWERTED IN TO PRIVATE LIMITED BY VIRTUE OF PART IX CONVERSION
QUESTION.
.CAN THE PRIVATE COMPANY CLAIM DEPRECIATION ON REVALUED VALUE OF ASSETS FOR INCOME TAX PURPOSES. IS THERE ANY CASE LAW IN SUPPORT OF ABOVE