https://www.taxtmi.com/caselaws?id=186103 The article analyses depreciation and deduction issues under the Income-tax Act, including TDS disallowance on testing charges, reimbursement reversals, machinery used through a contract manufacturer, obsolete assets, demonstration equipment, and validation charges. It notes that depreciation depends on ownership and use for business, including use through a contract manufacturer; depreciation is not available on machinery written off as obsolete and removed from the block of assets; and demonstration equipment used to promote sales is revenue in nature rather than capital, making alternative depreciation unnecessary. It also explains that TDS-related disallowance may be revisited on verification of tax payment, and reimbursement adjustments must match the year of reversal. en-us Thu, 30 Jun 2011 00:00:00 +0530 Wed, 07 Sep 2016 15:11:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186103 The article analyses depreciation and deduction issues under the Income-tax Act, including TDS disallowance on testing charges, reimbursement reversals, machinery used through a contract manufacturer, obsolete assets, demonstration equipment, and validation charges. It notes that depreciation depends on ownership and use for business, including use through a contract manufacturer; depreciation is not available on machinery written off as obsolete and removed from the block of assets; and demonstration equipment used to promote sales is revenue in nature rather than capital, making alternative depreciation unnecessary. It also explains that TDS-related disallowance may be revisited on verification of tax payment, and reimbursement adjustments must match the year of reversal. Case-Laws Income Tax Thu, 30 Jun 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186103