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2013 (9) TMI 974 - HC - Income TaxAllowability of depreciation on shuttering material - Assessee, a State Corporation, is engaged in the business of Civil Construction work specially for the constructing the bridges in India as well as abroad – Held that:- Construction of the bridge is the main business activity of assessee for which the shuttering is an essential item. The assessee is the complete owner of the shuttering. Without shuttering, no building or bridge can be erected. Shuttering material was treated as a plant on which 100% depreciation is allowable as per the ratio laid down in the case of Harijan Awam Nirbal Varg Avas Nigam Vs. CIT [1995 (12) TMI 2 - ALLAHABAD High Court] – Decided in favor of Assessee. Shuttering was not used, it was kept unused, therefore no depreciation allowance – Held that:- Reliance has been placed upon the judgment in the case of Dinesh Kumar Gulabchand Agarwal Vs. CIT [2003 (1) TMI 19 - BOMBAY High Court], wherein it has been held that The word "used" in section 32 of the Income-tax Act, 1961, denotes that the asset has been actually used and not that it is merely ready for use. The expression "used" means actually used for the purpose of the business - In the instant case, the assessee was the owner of the shuttering which was ready to use - Assessee is entitled for 100% depreciation – Decided against the Revenue.
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