Depreciation

Last updated: 08 September 2008

Court :

Brief :

Citation :
Commissioner of Income-tax vs. Refrigeration & Allied Industries Ltd

Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of - Assessment year 1971-72 - Assessee’s claim for depreciation on cold storage machinery was disallowed on ground that plant was not put to use during the year - Plant was not used because of poor potato crop - Whether in section 32(1) there is no requirement that assets should be used for whole of assessment year in question - Held, yes - Whether expression ‘used’ in section 32(1) includes both passive and active user - Held, yes - Whether in view of fact that machinery was kept in good working condition so that it could be used at any moment and also since all expenses relating to cold storage business were allowed, there was no justification to disallow claim of depreciation - Held, yes