Depreciation on Stand-by Spare parts ::

Court :
HC

Brief :
Held by the Hon`ble Court that, any `forced illness` of the machinery cannot disentitle to the assessee to claim the depreciation allowance, form the director report it is clear that the assessee was prevented form using the machinery because of the frequent labour unrest. therefore assessee is entitle to depreciation on stand-by spare parts even though they were not taken for use during the year.

Citation :
Southern Petrochemical Industries corporation Ltd Vs. C.I.T.

Depreciation on Stand-by Spare parts Section 32 Southern Petrochemical Industries corporation Ltd Vs. C.I.T. 01/29/2007 [2007] 292 ITR 362 (Mad) Case Fact: Whether, depreciation is allowed on stand-by spare parts even though they were not taken for use during the year? Decision: Held by the Hon`ble Court that, any `forced illness` of the machinery cannot disentitle to the assessee to claim the depreciation allowance, form the director report it is clear that the assessee was prevented form using the machinery because of the frequent labour unrest. therefore assessee is entitle to depreciation on stand-by spare parts even though they were not taken for use during the year.