TMI Blog2015 (1) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... tly considered that as the cylinders were filled and kept ready for use of business purpose, depreciation ought to have been allowed. - Decided in favour of the assessee. Addition made on account of closing stock - Tribunal deleted the addition - Held that:- As relying on ALLIANCE INDUSTRIES Versus INCOME TAX OFFICER [2014 (11) TMI 935 - GUJARAT HIGH COURT] we answer the question in favour of the assessee. - Decided in favour of the assessee. - TAX APPEAL NO. 1270 of 2007 - - - Dated:- 24-12-2014 - MR. KS JHAVERI AND MR. K.J.THAKER, JJ. FOR THE APPELLANT : MR SUDHIR M MEHTA, ADVOCATE FOR THE RESPONDENT : MR BD KARIA, ADVOCATE JUDGEMENT Per: K S Jhaveri: 1. Being aggrieved and dissatisfied with the impugned ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als) and the said appeal came to be dismissed confirming the disallowance/addition by the Assessing Officer. The assessee thereafter preferred further appeal before the Tribunal and the Tribunal after hearing the parties, allowed the same. Being aggrieved by the same, the present appeal is preferred. 4. Mr. Sudhir Mehta, learned advocate for the revenue submitted that the decision of the Tribunal is erroneous inasmuch as the depreciation was disallowed on a clear finding that the cylinders have not actually been put to use before 31.03.1999. He submitted that there was difference in the stock as per books of accounts and therefore the order passed by the Tribunal is required to be quashed and set aside. Mr. Mehta has relied upon the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Super Shine Gases and gas filled on 27-3-1995, cylinders were dispatched duly filled with gas on 30-3-1995. What is essential for claim of depreciation is ownership of assessee and its user for business purpose of assessee. Ownership is not disputed. According to AO objection is only that assessee has not actual user for the purpose of business. In our considered view, even constructive user or passive user are allowed for depreciation. Our view is fortified by Punjab and Haryana High Court (supra) in which engine kept in readiness is held to be used for the purpose of business. Cylinders are business assets of the assessee and are to be first filled with gas and sending these cylinders for the purpose of filling of gas itself is for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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