Put to use

‘used’ in S. 32(1) has been interpreted by the Courts to have a wider meaning so as to include not only the actual user but also the passive user. Further, the allowance for depreciation does not depend upon actual working of the machinery, it is sufficient if the assessee for the purpose of business employs the machinery in question and it is kept READY FOR ACTUAL USE

Dear Put to use word should be construed according to the available circumstances. Suppose, Machinery is bought but erection and installation take time then though machinery is available to use but we can not say it is put to use. Till the time all certificate are not being take for its usage, it is not put to use. While take the instance of CAR, which is put to use from day one of its purchase. Because CAR is readily available and put to use asset from day one.

Thanks

Mihir Doshi