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2015 (5) TMI 651 - HC - Income TaxDepreciation claim denied - cession of work/suspension of work in the factory premises of the petitioner - Held that:- Applying the decisions of M/s. Norplex Oak India [2011 (3) TMI 620 - CALCUTTA HIGH COURT] to the facts in this case wherein held that as the assessee was ready for doing his business. But for the adverse law and order situation, he could not actually run the factory although all the machineries were ready for use and the valuation of such machinery also depreciated notwithstanding its non-user. Notwithstanding such adverse law and order situation, the assessee did not abandon its business but suffered loss for such a state of affairs prevailing in that State over which he had no control with an expectation of resuming the business. This is not a case where the assessee himself is embroiled in a dispute with his labourers and in the process, has decided to declare a lockout expressing its intention not to run the business. Thus,the Tribunal below rightly granted depreciation in favour of the assessee - the question in the present case too has to be and is answered in the affirmative - Decided against the revenue. Expenditure on filling up the pond, leveling of the low land - revenue v/s capital expenditure - Held that:- In this case the expenditure was made for bringing into existence an advantage for the enduring benefit of the business of the assessee, and therefore, the same was capital in nature. In the circumstances the view taken by the learned Appellate Tribunal is certainly a possible view. We, therefore, answer the second question in the negative - Decided against the assessee
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