Depreciation on Assets is allowed, when such assets are kept ready for use - ITAT Delhi.

Last updated: 25 January 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT) Delhi Bench has ruled that depreciation can be claimed on assets that are purchased and kept ready for use, even if they haven't commenced commercial production. The tribunal considered machinery purchased late in the financial year, which was installed, commissioned, and even trial-run by engineers, as eligible for depreciation.

Court :
ITAT New Delhi

Brief :
The aforesaid appeal has been filed by the assessee against the impugned order dated 07.09.2017 passed by Commissioner of Income Tax (Appeals)-XXXV, New Delhi forthe quantum of assessment passed u/s. 143(3) for theAssessment Year 2013-14. In the grounds of appeal, the assessee has raised grounds as under:

Citation :
I.T.A. No.6965/DEL/2017

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