TMI Blog2021 (2) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... evidences, it is quite evident the machines were not only installed but ready to use as on 30.03.2013. Once this is an accepted position if the assets in the form of machinery equipment are kept ready for use, then same is eligible for depreciation as per the Income Tax Rules. As in the case of CIT vs. Integrated Technologies Ltd. [ 2011 (12) TMI 48 - DELHI HIGH COURT] upheld the similar principle that it is not necessary that the plant and machinery owned by the assessee should be actually put to use in the relevant accounting year to justify the claim of depreciation and that even if the plant and machinery or other asset is kept ready for use in the assessee's business, the assessee would be entitled to depreciation - we hold tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts qua the issue involved are that the assessee is engaged in the business of manufacturing and trading of yarns and garments. During the year, the assessee has made addition in the Fixed Assets to the tune of ₹ 227,43,20,548/-, out of which machineries amounting to ₹ 2,08,36,413/- were purchased in the month of February and March. The details of which are as under: Fixed Assets under head Purchased from Date of Bill Date of Put to Use Amount of bill Plant Machinery Lakshmi Machine Works Limited 26.02.2013 30.03.2012 83,69,030 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for installation and commissioning of their machines. The invoice for installation and commissioning was as under: Invoice No. Date Amount Description 8002047552 30.03.2013 ₹ 9303 Installation and Commissioning of LR9AXL i.e. bill No.11211203303 1211203307 of LMW 8002048005 30.03.2013 ₹ 9303 Installation and commissioning of LH-15 i.e. Bill No. 1111201285 of LMW 5. The machines were fully installed and commissioned and was put to use on 30th March, 2013, hence the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hine Works Limited on 26.02.2013 and 07.03.2013. As per the invoice and certificate issued by M/s. Voltas Limited, it has been certified that the machines were installed and commissioned on 30.03.2013. Thus, from these evidences, it is quite evident the machines were not only installed but ready to use as on 30.03.2013. Once this is an accepted position, then in view of the judgment of the Hon'ble Jurisdictional High cited supra, if the assets in the form of machinery equipment are kept ready for use, then same is eligible for depreciation as per the Income Tax Rules. In NTPC vs. CIT (supra), the Hon'ble High Court held that two conditions are necessary to be fulfilled before an allowance by way of depreciation under Section 32 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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