TMI Blog2004 (10) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... regular production started in October, 1992. We, therefore, find that no error in the findings recorded by the Tribunal and no substantial question of law arises for consideration. The appeal is, therefore, dismissed. - - - - - Dated:- 27-10-2004 - Judge(s) : R. V. RAVEENDRAN., SHANTANU KEMKAR. JUDGMENT The judgment of the court was delivered by R.V. Raveendran C.J. - The respondent (assessee) claimed that it installed and put to use a bio-gas plant at the cost of Rs. 90,41,057 in May 1992. In the return for the assessment year 1993-94, it claimed depreciation. The Income-tax Officer while passing the order of assessment dated February 29, 1996, restricted the depreciation to 50 per cent, on the ground that the bio-gas plant was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the entire equipment has been installed and commissioned and put to use in May, 1992. Feeling aggrieved, the Department filed this appeal under section 260A of the Income-tax Act contending that the following question of law arises for consideration: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that the assessee-company was entitled to depreciation on bio-gas plant for full year ignoring comprehensive information furnished by the assessee-company itself vide its letter dated February 23, 1996, which contains its own admission with the bio-gas plant was commissioned on October 9, 1992, and also documentary evidence on record clearly proves the bio-gas pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operational. It is well settled that the word "used" should be understood in a wide sense, so as to include passive as well as active user (vide the decisions of the Bombay High Court in CIT v. Viswanath Bhaskar Sathe [1937] 5 ITR 621; Whittle Anderson Ltd. v. CIT [1971] 79 ITR 613 and the decision of the Delhi High Court in Capital Bus Service Pvt. Ltd. v. CIT [1980] 123 ITR 404). In V. Ramakrishna and Sons Ltd. v. CIT [1984] 149 ITR 554, the Madras High Court held that user of machinery in test production or experimental manufacture was user for the purposes of the assessee's business. The question was directly considered by the Gujarat High Court in Asst. CIT v. Ashima Syntex Ltd. [2001] 251 ITR 133, and it was held that trial productio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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