Depreciation on trucks under repair remains allowable where prior and subsequent business use shows continuous use

Depreciation remained allowable on trucks that were under repair during the relevant years because their temporary repair status did not interrupt continuity of business use. The vehicles had been used in the assessee's business before and after those years, so they continued to be regarded as used for the purposes of the business notwithstanding the repairs.

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Issues: Whether depreciation is allowable on trucks that were under repair during the relevant accounting years but had been used for the assessee's business before and after those years.

Analysis: The trucks were admittedly used in the assessee's business in earlier and later years, and their temporary repair status during the relevant years did not break the continuity of business use. The mere fact that the vehicles were under repair did not mean that they had ceased to be used for the purposes of the business.

Conclusion: Depreciation was allowable, as the trucks continued to be regarded as used for the purposes of the business notwithstanding the repairs.

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