In Brief
Lissie Medical Institutions challenged the disallowance of depreciation that had been allowed in previous assessment years. While the High Court answered the question of law in favour of the Revenue, it granted relief by allowing the assessee to write back depreciation for the disputed year and prior years, with the amount to be carried forward for future charitable purposes. The Supreme Court upheld this approach, holding that an assessee cannot be unfairly surprised by sudden disallowance of long-standing depreciation allowances. The appeal was dismissed, with the relief already granted by the High Court affirmed.
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