TaxTMI 
TaxTMI 
i purchased a machine from delhi on 31/03/2007. the machine was delivered on 31/03/2007. the case was selected for assessment u/s 143. the assessment was completed in due course . during audit , the ito (audit ) has raised a point that if the machine was purchased on 31/03 from delhi , how it can be put to use on 31/03 itself. i have claimed half rate of depreciation on that machine . advise
Rate of depreciation on machinery purchased on 31/03/2007
24 Mar 2010 
2 Replies 
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Depreciation eligibility: asset must be put to use; delivery and factual readiness determine allowable depreciation.
Entitlement to depreciation turns on whether the asset was put to use; immediate delivery and claimed use on the purchase date raise a factual question requiring evidence of readiness, delivery, installation or constructive use to support a half-rate depreciation claim, and resolution depends on the assessing officer's appraisal of those facts. (AI Summary)
Entitlement to depreciation turns on whether the asset was put to use; immediate delivery and claimed use on the purchase date raise a factual question requiring evidence of readiness, delivery, installation or constructive use to support a half-rate depreciation claim, and resolution depends on the assessing officer's appraisal of those facts. (AI Summary)