TMI Blog2014 (10) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income Tax v. Ashima Syntex Ltd. [2000 (8) TMI 22 - GUJARAT High Court] - plant and machinery was used till the end of the accounting year - Law does not require that there must be optimum production for granting the benefit - Law only requires that there must be use of plant and machinery for the purpose of business - The assessee was entitled to depreciation on the machinery – Decided in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd circumstances of the case, the Tribunal is right in law and on facts in disallowing the assessee's claim for depreciation allowance under section 32 of the IT Act, 1961 in respect of plant and machinery used in trial production during the year? 4. Learned Counsel for the appellant contended that the issue is squarely covered by the decision of this Court in the case of Assistant Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the previous year on trial run basis. The Income-tax Officer rejected the claim of the assessee on the ground up to the end of the accounting year only tests and trials were going on and success was achieved only at the end of the accounting year and it could not be said that the assessee set up the business up to the end of the previous year. However, the Tribunal allowed the appeal of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery. 5. In that view of the matter, the answer stands answered in favour of the assessee. We are of the opinion that no elaborate discussion of facts and detailed reasons be given for allowing the above Appeal as the facts of this case are akin to the facts in the decision on which reliance is placed hereinabove. 6. Hence, the Tax Appeal is allowed to the aforesaid extent in favour of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
