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2013 (6) TMI 524 - AT - Income TaxDepreciation disallowed - as per AO assessee had shown the rental income therefore the asset being not used for the purposes of assessee's own business - Held that:- The assessee has given on hire JCB machines, cranes, pipe layers as instead of keeping the machinery idle, the assessee has hired-out those machinery and shown hiring income. By showing this income, the assessee has not given any loss to the Revenue, rather Revenue got benefited. This is not the case of the Revenue that the machineries in question have not at all been used by the assessee for the single day during accounting period under consideration. In a situation when a machinery has been used, for any period in a financial year for the purposes of the business of the assessee, then the assessee is entitled for the depreciation u/s.32(1). Thus whether the machinery is rented out or not had no consequence on the allowance of depreciation which had fallen within the block of assets for the year under consideration and for a part period used towards the business purposes. As per the provisions of section 57 an assessee is entitled for deduction in respect of "income from other sources" which includes deduction u/s.32 of the Act. Since in the present case, the hiring of the machinery was considered as "income from other sources" within the ambits of section 56 of the Act, therefore in consequence thereupon the assessee is entitled for claim of deduction as prescribed u/s.57(ii) which provides deduction u/s.32(i). In favour of assessee.
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