Depreciation of Block of Assets

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This query is : Resolved

Dhinesh kumar (Querist)

17 June 2009 A Machinery (In the Plant & MAchinery Block) is having its WDV in the Financial year opening, during the year for more than 180 days the machinery is stopped for commercial production.

In this circumstances can full depreciation is claimed under Income Tax or Partial depreciation is claimed.

Kindly suggest me in this regard.

CA.BHARAT BHUSHAN

CA.BHARAT BHUSHAN (Expert)

17 June 2009 Even if the commercial production is stopped but overall the unit is working or doing some business, then u can claim depreiation for full year.

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)

17 June 2009 Dear Dinesh
in case of new machinery, equipment etc. if they put to use for less than 180 days then Depreciation shall be 50% of Normal, but since in ur case Machinery has been already put to used so this criteria does not apply. even if machinery used for one day you will get full depreciation

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

17 June 2009 To claim depreciation,the asset should have been used at least for sometime (not necessarily throughout) during the relevant previous year. The term'use' includes passive use and ready for use also. In view of this, you can claim full depreciation.

Citation:- Capital Bus Services Private Limited 123 ITR 404 (DEL).