Income Tax Act, 2025
Section 3: Ins. by Act 27 of 1999, s. 26 (w.e.f. 12000).
3. Ins. by Act 27 of 1999, s. 26 (w.e.f. 12000).
238
(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).]
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 1[value of any asset or any block of
assets] 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.
2[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.]
3[Explanation 2A.—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 4[written down value of the assets] transferred to the
resulting company pursuant to the demerger.
Explanation 2B.—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 5[written
down value of the transferred assets 6***] of the demerged company immediately before the demerger.
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;]
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
of section 170 the written down 1[value of any asset or any block of
assets] 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.
2[Explanation 2.—Where in any previous year, any block of assets is transferred,—
by a holding company to its subsidiary company or by a subsidiary company to its holding
company and the conditions of clause
or, as the case may be, of clause
of section 47 are
satisfied; or
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