9911796707
TMI Blog2006 (11) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... d the assessee to furnish the copy of the invoices of the machinery on which depreciation was claimed. From the verification, it was found that the items of machinery had been purchased during the year. However, since on the admission of the respondent-assessee itself that the hospital started functioning from February/March, 1989, the assessee was directed to produce evidence regarding use of machinery. No evidence was produced by the assessee. In those circumstances, the assessing authority concluded that the items of machinery on which depreciation was claimed were not put to use by the hospital and consequently he disallowed the depreciation on the imported machinery to the extent of Rs. 17,70,569 and on Indian machinery to the extent o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iation is not available in terms of the material placed on record. Both learned counsel have relied on various judgments. 4. After hearing, we have carefully perused the material placed on record. 5. The only question that requires our consideration is as to whether the assessee is entitled for benefit of depreciation in terms of section 32 of the Indian Income-tax Act. The Assessing Officer noticed that the firm did not produce any evidence in respect of the claim of depreciation. The Assessing Officer notices that the firm did not produce copies of prescriptions produced by the professionals. It also noticed that no prescription slips were made available to indicate that there was no recommendation to use these imported items of machine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave also been construed by this court earlier in the State of Haryana v. Dalmia Dadri Cement Ltd. 68 STC 173 (SC) ; [1987] Supp SCC 679, to mean " intended for use". The said judgment is not available since the word used in the case on hand " for use" stands on a different footing than " use" in terms of the statute. 9. Multican Builders Ltd. v. CIT [2005] 278 ITR 142 is a judgment of the Calcutta High Court. In the said case, the court considered the leasing of the vehicle for the purpose of depreciation by the court. That judgment also stands on distinguishable facts. 10. CIT v. Union Carbide (I) Ltd. [2002] 254 ITR 488, is again a judgment of the Calcutta High Court. In the said case, the court went into the question as to whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms in statutes like the Sales Tax Act, resort should be had not to the scientific or technical meaning of such terms but to their popular meaning or the meaning attached to them by those dealing in them, that is to say, to their commercial sense. There cannot be any quarrel over these well accepted principles of law. The question is as to whether " ready for use" is " used" in terms of section 32. 14. In Director of Entry tax v. Mahindra and Mahindra [2003] 11 SCC 749 was a case with regard to refund of entry tax. The court notices that this is not a case where a machine had only been displayed. In other words, the machine was started up and its working was shown. It was, therefore, used and it is of no consequence that the use was not for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eafter, in paragraph 9, the court ruled as under (page 39) : "We are in no doubt whatever, therefore, that it is only land which is actually in use for an industrial purpose as defined in the said Act that can be assessed to non-agricultural assessment at the rate specified for land used for industrial purposes. The wider meaning given to the word " used" in the judgment under challenge is untenable. Having regard to the fact that the said Act is a taxing statute, no court is justified in imputing to the Legislature an intention that it has not clearly expressed in the language it has employed." 17. From these judgments, what is clear to us is that for the purpose of depreciation, machinery has to be actually used in terms of the statute ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
