TMI Blog2011 (9) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... a Pvt. Ltd. (2010 -TMI - 78088 - DELHI HIGH COURT) wherein their lordships have held that the words 'used for the purpose of business' in the case of user of assets in earlier years and after considering the concept of block of assets, it was held that even if the business is closed, the depreciation cannot be disallowed for non-user. - Decided in favor of assessee. - ITA No. 3658/Del/2011 - - - Dated:- 30-9-2011 - I.P. Bansal, K.G. Bansal, JJ. Anusha Khurana, Sr. DR for the Respondent ORDER I.P. Bansal: This is an appeal filed by the revenue. It is directed against the order passed by the CIT (A) dated 26th May, 2011 for Assessment Year 2005-06. The grounds of appeal read as under:- 1. In the facts and circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck of 'computers' and, thus, are entitled for higher depreciation @ 60%. 3. Notice of hearing was sent to the assessee, however, none was present. The learned DR relied upon the assessment order in which the Assessing Officer has treated the aforementioned accessories different from computer and has allowed the normal depreciation instead of 60%. 4. After hearing the learned DR and after considering the findings recorded by the Assessing Officer and CIT (A), we are of the opinion that learned CIT (A) has rightly granted the relief to the assessee and the said relief is in accordance with the decision of Hon'ble Delhi High Court in the case of CIT vs. BSES Yamuna Powers Ltd. dated 31st August, 2010 which their lordships have held as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that due to an arrangement between the holding company and the assessee company, certain expenses are incurred by the holding company for routine business purposes and the same are being accounted without any mark-up or interest. Since those assets have been operated from the low capacity with the assessee, the same was transferred and installed in the premises of ultimate holding company since 1st June, 2002. It was also submitted that subsequently those assets were sold to holding company itself. Under these facts the Assessing Officer held that the assets have not been used for the assessee's business for any gainful activity and, therefore, he disallowed the claim of the assessee regarding depreciation of Rs. 8,16,858/- on those as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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