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
Vidya
Published in Income Tax
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