TMI Blog1935 (12) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is the Central Provinces Manganese Ore Company Ltd., Nagpur, through its agent and General Manager, Mr. Bartlett, and he objects to the disallowance of a sum of ₹ 9,800 as depreciation on the part of the Company's machinery which remained idle during the account year in question. Owing to depressed trade, part of the works was closed down after 1931, and the accumulated stock w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the fact that part of the taxed profits arose from sale of stocks of ore mined previously to the account year but in the winning of which the machinery was instrumental, this same machinery should not be considered as being used for the purpose of business and the depreciation on it allowed as a deduction under Sec. 10(2)(vi) in the account year . As pointed out by the Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll; and also to go on claiming depreciation for years together without using the machinery, provided only that the accumulated stocks were being gradually disposed of. The assessee would distinguish the case of N.D. Radhakishen Sons v. Commissioner of Income Tax, Punjab, on the ground that the facts are different. No doubt the case concerned a motor car and not factory machinery, but the general ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, and he has not been able to produce any other case in his favour. 3. No doubt on the above view, as depreciation is allowed only for a number of years, the effect of the machinery lying idle might be that full allowance of depreciation is not finally recovered. The result might, however, be got over by using the machinery for a short time each year. The plain significance of the rule must ..... X X X X Extracts X X X X X X X X Extracts X X X X
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