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2017 (1) TMI 1442 - HC - Income TaxEntitled to depreciation u/s 32 - balance written down value relating to Daru Hera unit, forming part of the block of assets? - Held that:- This Court is of the opinion that the reliance placed upon Allied Electronics (2007 (2) TMI 213 - DELHI HIGH COURT) cannot be of assistance to the Revenue. That did not take into account the changes brought about through the amendment and appears to have been on an appreciation of Maharashtra Minerals Corporation Ltd. v. CIT [1992 (11) TMI 5 - BOMBAY High Court] . That decision was in the context of law prevailing in 1972-73 – obviously before the amendments were made to the Act prior to the introduction of the concept of block assets. Income Tax Appellate Tribunal was not right in holding that the appellant is not entitled to depreciation under Section 32 of the Income Tax Act, 1961, in respect of the balance written down value relating to Daru Hera unit, forming part of the block of assets. Also appellant is entitled to depreciation in respect of the assets, which were part of the Daru Hera unit, even if the assets had not been put to use during the assessment year 2005-2006 and had been sold prior to the end of the accounting year. Both the questions of law are answered in favor of the assessee and against the Revenue
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