https://www.taxtmi.com/caselaws?id=66225 Depreciation on ponds constructed on leased land was disputed after the ponds were discarded and handed over to the landowners without any consideration. The ITAT held that once an asset forms part of a "block of assets" under s. 32(1)(ii), it loses individual identity; unless any money is payable on transfer/discarding, nothing can be reduced from the block and s. 50 is not attracted. Ownership for depreciation is satisfied by the deeming fiction applicable to leasehold improvements, and prior allowance of depreciation on the same basis bound the Revenue; non-claim in one year was immaterial as depreciation is not mandatory (Mahindra Mills). Depreciation on the WDV of the block, including the discarded ponds, was allowed; CIT(A) was set aside and the appeals were allowed. en-us Tue, 11 Jun 2002 00:00:00 +0530 Wed, 07 Jan 2026 16:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66225 Depreciation on ponds constructed on leased land was disputed after the ponds were discarded and handed over to the landowners without any consideration. The ITAT held that once an asset forms part of a "block of assets" under s. 32(1)(ii), it loses individual identity; unless any money is payable on transfer/discarding, nothing can be reduced from the block and s. 50 is not attracted. Ownership for depreciation is satisfied by the deeming fiction applicable to leasehold improvements, and prior allowance of depreciation on the same basis bound the Revenue; non-claim in one year was immaterial as depreciation is not mandatory (Mahindra Mills). Depreciation on the WDV of the block, including the discarded ponds, was allowed; CIT(A) was set aside and the appeals were allowed. Case-Laws Income Tax Tue, 11 Jun 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66225