Depreciation allowable or not

Dear Chetan,

Interesting question - but I think Deduction will be allowed to the Firm provided that the business was in existence during that short period-  Proviso to Sec 32 read with Sec 170.... 

As per section 32 depreciation is allowable in respect of assets held by the assessee as on 31st March. Since no asset held as on 31st March no deprecation allowable to the partnership concern.

Dear Aditya Sir,

Sec 32 proviso,

Provided also that the aggregate deduction, in respect of depreciation of buildings, machinery, plant or furniture, being tangible assets or know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets allowable to the predecessor and the successor in the case of succession referred to in clause (xiii) and clause (xiv) of section 47 or section 170  or to the amalgamating company and the amalgamated company in the case of amalgamation, or to the demerged company and the resulting company in the case of demerger, as the case may be, shall not exceed in any previous year the deduction calculated at the prescribed rates as if the succession or the amalgamation or the demerger, as the case may be, had not taken place, and such deduction shall be apportioned between the predecessor and the successor, or the amalgamating company and the amalgamated company, or the demerged company and the resulting company, as the case may be, in the ratio of the number of days for which the assets were used by them

Now, Sec 170 covers the cases of Succession of a business otherwise than on death.