Q: Ours is a partnership firm with the manufacturing unit at Mumbai where depreciation has been claimed and allowed since 1965. In the financial year, 1996-97, we established a new industrial undertaking at Daman enjoying income-tax exemption under Section 80 IA of the Income Tax Act.
We have not provided for any depreciation in respect of the Daman unit's assets for 1996-97 and 1997-98. We had sold some of the fixed assets of the Mumbai unit during 1997-98 and the excess value so realised after fully adjusting Mumbai
