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2017 (8) TMI 1312 - AT - Income TaxClaim of depreciation on the plant and machinery - AO disallowed this claim by holding that there was not business activity carried on by the assessee during the year since the plant and machinery was not in operation - concept of depreciation on "block assets" - Held that:- For the Assessment Year 2003-04, this plant was in operation and the assese claimed depreciation and the same was allowed. The Director’s Report for the year ended 31st March 2008, reports resumption of supplies of Fly Ash. The plant was in operation for the Financial Year 2007-08, relevant to the Assessment Year 2008-09 and depreciation was claimed by the assessee and allowed by the Assessing Officer. The above proves, that it was only for the Financial Year 2004-05, that the assessee was unable to put to the plant and machinery, due to stoppage of movement of Fly Ash. This has resulted in temporary closure. Depreciation cannot be denied under such circumstances. Even otherwise, under the block of assets concept, the requirement of using of the plant and machinery, by the assessee, during the Financial Year, does not arise. See Natco Exports. Versus DCIT [2002 (6) TMI 168 - ITAT HYDERABAD-A ] - Decided in favour of assessee.
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