Put to use for building construction

Dear Piyush, 

In the Income Tax Act there is no clear definition about the word"put to use" and is therefore to be considered in a wider sense.Steps taken to set building into gear are ‘putting it to use’ - After arranging for the building, any steps taken by the entrepreneur to set the building into gear for running the unit, would be nothing but putting it to ‘use’ - CIT v. O.P. Khanna & Sons [1983] 140 ITR 558 (Punj. & Har.).In the case of leases also it is seen that the lessor generally leases out the newly purchased buildings to the lesses without taking any certificates and can easily claim depreciation.For them giving out the assets on lease is itself pertaing to put to use.Thye definition "put to use is to be used with reference to the context of the situation.Also in the above mentioned case reliance is placed on the decision of Sarabhai Management Corporation Ltd. v. CIT [1976] 102 ITR 25 (Guj) with respect to leases.

Thanks & Regards,

Avishek.