TMI Blog2008 (7) TMI 1070X X X X Extracts X X X X X X X X Extracts X X X X ..... , which is engaged in shipping business, was owning one Barge named Jay - Il, which was included in the block of assets, had suffered an accident on 06.03.2000 and sunk. It was also observed that though the assessee retrieved the Barge it did not get it repaired finding it uneconomical and therefore, the same was sold as on where is basis for Rs. The aforesaid Barge was sold in the month of May/ June 2001. Thus, according to the Assessing Officer, the Barge was not used for the purpose of the business during the whole year as it met with an accident and was non operational nor was sent for any repairs. Hence, according to the Assessing Officer, depreciation on the value of such Barge included in the block of asset was not allowable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the system of allowing depreciation with effect from 01.04.1988. By these provisions, the concept of block of assets brought into statute book for the purpose of allowing depreciation. The relevant provisions as it stood after the amendment that is applicable to the year under consideration reads as under: - 32. (I) In respect of depreciation of buildings, machinery, plant or furniture, owned by the assessee and used for the purposes of the business or profession, the following deductions shall, subject to the provisions 34, be allowed. (i) (ii) in the case of any block of assets. such per ntage on the written doum value thereof as may be prescribed . Provided that where the actual cost of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed or destroyed during that previous year t gether with the amount of the scrap value, if any, so, however, that the arnount of such reduction does not exceed the written down value as so increased; and (ii) in respect of any previous year relevant to the assessment year commencing on or after the I st day of April, 1989, the written down value of that block of assets in the immediately preceding previous year as reduced by the depreciation actually allowed in respect of that block of assets m relation to the said preceding previous year and as harther adjusted by the increase or the reduction referred to in item (i). 9. Thus, for the assessment year 1988-89, the W.D.V. of any block of assets shall be the of the W. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciation and in this regard relied to the decision of the Hon'ble Bombay High Court in the case of Dineshkumar Gulabchand Agrawal vs. CIT, 267 ITR 768 (Born). We have perused the aforesaid decision and are of the view that the same is not applicable to the facts of the present case. In the present case, the assessee has already used the asset for the purpose of business. The asset has already entered the block of assets. In the case before the Hon'ble Bombay High Court, the asset in question was not at all put to use. We therefore, find the decision relied upon the Id. DR. is of no assistance to the plea of the DR. Respectfully following the decisions of the Tribunals referred to the above, we hold that the assessee was entitled to c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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