Depreciation on Idle machinery

[velayutham panchatcharam]

Please clarify whether depreciation is applicable or not for idle machinery as per income tax act? Expecting your feedback with details.

AI Summary

Depreciation eligibility extends to idle or standby machinery if used for business during any part of the year.
Depreciation is allowable if an asset is used for the purpose of business or profession during any part of the previous year; continuous use is not necessary. When assets form part of a block of assets and depreciation is allowed on that block, the entitlement applies to the block as a whole and cannot be denied for an individual asset that was unused in some years. Standby or idle machinery kept ready for use may be regarded as used; distinctions among idle, unused, not usable or discarded items depend on facts and circumstances and application of active and passive tests.