TMI Blog1937 (3) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... answer. It appears that the assessee, during the year of assessment, which was the year ending March 31, 1936, owned a ginning factory in Dhulia, and he was a member, with the owners of other ginning factories, of a pool. The Commissioner finds as a fact, that during the year of assessment the factory of the assessee was not actually employed in the work of ginning ; and presumably it was not s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place or places : Provided always that any of the parties hereto shall be at liberty if they so desire to close his or their factory or factories and dispense with his or their staff and workmen for any period during the contract period, retaining nevertheless his or their right to receive his or their share in the said pool. " That clause appears to impose on the assessee the obligation during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 (2) which authorises an allowance in respect of insurance of machinery, plant and furniture used for the purposes of the business. The question, therefore, resolves itself into this-was the machinery of the assessee during the year of assessment used for the purposes of the business from which his profit was derived ? I agree with the view expressed by the Commissioner of Income Tax, and in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old that it includes only the actual work of the machinery, and it is urged that it is that working which occasions depreciation. But I think that the word "used" in this section may be given a wider meaning and embraces passive as well as active user. Machinery which is kept idle may well depreciate, particularly during the monsoon season. It seems to me that the ultimate test is, whether, withou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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