Actual user required for depreciation under income tax law; idle business assets did not qualify for allowance.

Depreciation under Section 10(2)(vi) of the Income-tax Act, 1922 required actual user of the buildings, machinery, plant and furniture during the relevant year. Mere maintenance of the assets for business, or their availability for use, did not satisfy the statutory phrase "used for the purposes of the business". Because the factory and machinery remained idle throughout the year, the condition for depreciation was not met and the allowance was denied.

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Issues: Whether depreciation under Section 10(2)(vi) of the Income-tax Act, 1922 was allowable when the buildings, machinery, plant and furniture were not actually used during the relevant year, though they were maintained for the business.

Analysis: The expression "used for the purposes of the business" in Section 10 was held to mean actual user and not mere capacity for use or general availability for business purposes. The distinction drawn from other clauses of Section 10(2) did not assist the assessee, because the allowance for depreciation depended on the assets having been actually used during the year. As the factory and machinery remained idle during the year, the statutory condition for depreciation was not satisfied.

Conclusion: Depreciation was not allowable, and the reference was answered against the assessee.

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