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2012 (10) TMI 49 - AT - Income TaxComputation of depreciation u/s 32 – Whether depreciation can be claim from the date of actual commencement of business or from the date of setting up of the business – Assessee contended that place of business was ready by 30.09.2003 - First sale bill of the raised on date 01.01.2004 – AO apply of 50% of the depreciation rate for half year – Held that:- Once business has been set up and ready to commence business, expenses have to be allowed irrespective of the fact that actual commencement of the business was much later. Therefore, the building was fully ready prior to 30.9.2003 and depreciation should be allowed at normal rate. We are however unable to accept the arguments that merely because the building was ready, the business had been set up. The assessee was setting up entertainment centre and, therefore, unless assessee was ready to provide any of the entertainment services, it cannot be said that place of business had been set up and the building was used for the purpose of business. It has not been examined whether these fitness machines were ready for use before 30.9.2003. No specific opportunity had been given to the assessee to prove whether any of the services in the entertainment centre were were ready before 30.9.2003. Case remand back to AO
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