10 September 2010
Sir, Can anybody tells me that if a Factory doesn`t run in a year then it is necessary to charges depreciation on full rate to it? Please explain.
10 September 2010
Since the assets were not used for the purpose of the business even for a single day depreciation under Income tax Act,1961 will not be allowed. Citation :- CIT V Oriental Coal Co Ltd (1994) 206 ITR 682 (Cal). This judgement is based on a question of law while the factory was under lock-out during the entire financial year.
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