TMI Blog1945 (8) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Factory worked only for a period of nearly two months a dispute arose between the assessee and the Income-tax department as to whether in these circumstances the assessee was entitled to claim the full amount allowable under Section 10(2)(vi) which runs as follows:- In respect of depreciation of such buildings, machinery, plant, or furniture being the property of the assessee, a sum equivalent..... to such percentage on the original cost thereof to the assessee as may in any case or class of cases be prescribed and in any other case, to such percentage on the written down value thereof as may in any case or class of cases be prescribed. The contention of the assessee was that the full amount which is allowable under this provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he business from which the profits were derived was that of ginning factories, and the contribution of the assessee to that business was the obligation to keep his machinery ready for actual use at any moment. It is, no doubt, true, as the learned Advocate-General says, that it is possible to give the word 'used' a more limited meaning and hold 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, wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n used for other purposes also. There is no such provision in the Act as would justify the view that if the machinery is not used throughout the year, then the period for which it has worked should be calculated and depreciation should be allowed in proportion to such period. It was contended by Mr. Dutt that the view suggested by him would be the most equitable view and must have been contemplated by the Act. This, however, is not borne out by the language of the provision which is applicable and if there is any defect in the language, that cannot be made up in the way suggested by the learned counsel. I would, therefore, answer the question formulated by the Tribunal in the affirmative and hold that the deduction claimed by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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