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2017 (11) TMI 574 - HC - Income TaxEligible for depreciation u/s 32 - whether the depreciation deserves to be computed and allowed with reference to the Written Down Value of such Block of Asset as defined u/s 43(6)? - Held that:- Expression “Used for the purpose of business” in section 32 has to be read harmoniously with the expression “Discarded” occurring in Clause III of sub section (1) thereof. On harmonious reading of these expressions, “Used for the purpose of business” only means that assessee has used the machinery for the purpose of business in earlier years. Therefore once depreciation was allowed on block of assets in previous year actual user of machinery is not required with respect to the discarded machinery and the condition for eligibility of depreciation that machinery is used for the purpose of business would mean that discarded machine is used for the purpose of business in the earlier years for which depreciation is allowed. - Decided in favour of the assessee against the department.
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