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2007 (9) TMI 362 - HC - Income TaxDepreciation- The assessee is engaged in the business of solvent extraction from de-oiled cake simultaneously with the production and sale of soya milk, declard nil income after claiming depreciation on a terapack machine. During the course of survey, it was noticed that the terapack machine was lying idle covered with a paper and kept locked in a room. The Assessing officer denied depreciation on the terapack machine and on appeal the Commissioner (Appeals) upheld the disallowance. On further appeal the Tribunal held that if the asset was not sold, discarded or demolished or destroyed during the previous year, the assessee was entitled to depreciation and allowed the claim. Held that- since the fact that the machine had been kept in readiness for use and would be deemed to have been used within the meaning of the expression contained in section 32 of the Act.
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