banner_ad

Depreciation

This query is : Resolved 
Profile Image

Profile Image

(Querist)
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.

Thanks & Regards,
ACS Preeti
Profile Image

Sheetal Metha

Profile Image

Sheetal Metha (Expert)
10 September 2010 Depreciation means - A decrease or loss in value, as because of age, wear, or market conditions.

Hence if Assets are not used in the year it necessary to charge the depreciation @ full rate
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
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.
Profile Image

Arun Punyani

Profile Image

Arun Punyani (Querist)
11 September 2010 Thanks a lot sir for ur valuable advice.

Regards,
ACS Preeti
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details