1993 (8) TMI 5 - HC - Income Tax

Depreciation allowed on trucks under repair, treated as business-use assets u/s 32, favoring assessee over Revenue

HC held that the assessee was entitled to depreciation on the written down value of trucks that remained under repair throughout the relevant accounting ... Entitlement to deduction for depreciation on the written down value of the trucks which were under repair throughout the relevant accounting years but were used for the purpose of the business earlier and later - Movable Property - HELD THAT:- The answer is self-evident. In our opinion, the vehicles continued to be in use for the business of the assessee even though the same were under repair. The question referred to us is answered in the affirmative, i.e., in favour of the assessee and against the Revenue. The High Court of Bombay ruled in favor of the assessee, stating that trucks under repair but previously and subsequently used for business are still eligible for depreciation deduction. The court found that the trucks were considered to be in use for business purposes despite being under repair. The judgment was delivered by Judge D. R. Dhanuka.