TMI Blog2007 (2) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... av, for the appellant. J. R. Goel with S. C. Sharma, for the respondent. JUDGMENT The judgment of the Court was delivered by 1. V.B. GUPTA, J. - Appellant has filed the present appeal under Section 260A of Income Tax Act, 1961(hereinafter referred to as Act) against the impugned order dated 31 st January, 2006 passed by Income Tax Appellate Tribunal (hereinafter referred to as Tribunal) in ITA No.4778/Del/03 for the assessment year 2000-01. By the said order the claim made by the Appellant under Section 32(1)(iii) of the Act for write off of discarded/obsolete machinery amounting to Rs.40,83,828/- was disallowed. 2. The brief facts of the case are that Appellant-company is engaged in manufacturing and trading of floppy a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argued by learned counsel for the Appellant that sub-clause (iii) of Section 32(1) of the Act does not deal with the allowance of depreciation but deals with deduction for discarding, demolition, destruction or sale of the depreciable assets. All that the Section requires is that the assets should have been used for the purposes of business in the earlier years on which depreciation should have been allowed and such assets should form part of the Block of Assets on which depreciation was claimed in the earlier years. It does not mandate that such assets should have been used in the year of discarding, demolition and sale. User of machinery in the year of discarding, demolition and sale etc. is not mandatory condition. The interpretation g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich it is first brought into use), the amount by which the moneys payable in respect of such building, machinery, plant or furniture, together with the amount of scrap value, if any, fail short of the written down value thereof;? 8. A bare reading of this provision will show that one of the conditions for allowing the above deduction is that the machinery must have been used for the purposes of the business during the previous year in which the machinery is sold, discarded, demolished or destroyed. There is no dispute between the parties on this issue. The only dispute is as to whether the machinery was so, used or not. 9. There is a concurrent finding of three authorities below, i.e. the Assessing Officer, Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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