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2017 (2) TMI 278 - HC - Income TaxEntitlement to depreciation on plant and machinery not put to use during the year under consideration - assessee had stopped the manufacturing activity and therefore, the question of use of machinery does not arise - CIT(A) reversed the findings of the AO on the premise that individual items included in the block are not to be considered separately for the purposes of granting depreciation in light of the amended provisions - Held that:- We do not find any legal infirmity in the aforesaid view adopted by the first appellate authority since the assessment order itself reveals that it is not the case of Assessing Officer that the assets were not put to use at all. Once the factory building is put to use, it is not possible to restrict the depreciation on the said building by stating that only a portion thereof has been put to use. Similarly, in relation to block of assets, it is not possible to segregate items falling within the block for the purposes of granting depreciation or restricting the claim thereof. Once it is found that the assets are used for business, it is not necessary that all the items falling within plant and machinery have to be simultaneously used for being entitled to depreciation. In view of the above discussion, we hold that the Tribunal committed serious error in law in disallowing the depreciation. - Decided in favour of assessee
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