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2015 (12) TMI 633 - DELHI HIGH COURTEntitlement to additional depreciation - machinery used to broadcast radio programs in the FM channel - ITAT allowed the claim - Held that:- In the facts and circumstances of the present case, the Assessee can be said to have used the plant and machinery acquired and installed by it after 31st March 2005 for manufacture/production of an ‘article or thing.’ Since the Assessee has satisfied the requirements of Section 32 (1) (iia) of the Act, it is entitled to the additional depreciation as claimed by it for the AY in question. The Revenue has also no answer to the submission of the Assessee for AYs 2009-10 and 2010-11 its claim for additional depreciation has been allowed by the AO. - Decided in favour of assessee. Depreciation on Licence Fee i.e. a non-intangible asset - Held that:- No provision of the Act has been brought to the notice of the Court which states that an Assessee would be denied the claim of depreciation on intangible assets only because there was no claim also on the tangible asset. For the purpose of Section 32 it is sufficient that assets be kept ready for use in order to claim depreciation thereon. As decided in Capital Bus Service Pvt. Ltd. (1980 (2) TMI 69 - DELHI High Court ) it was held that while interpreting the expression ‘used’ “it would be more appropriate to envisage the expression as comprehending cases where the machinery is kept ready by the owner for its use in the business and the failure to use it actively in the business is not on account of its incapacity for being used for that purpose or its non-availability. - Decided in favour of assessee.
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