https://www.taxtmi.com/caselaws?id=14585 The High Court of Delhi upheld the decision to allow depreciation on machinery not actively used during the assessment year 1971-72. The court emphasized that depreciation aims to compensate for wear and tear on assets used in business, including passive utilization. It noted that depreciation is essential to accurately reflect business profits by considering asset deterioration. The court affirmed the Tribunal's decision, stating that maintaining machinery for potential use justifies depreciation allowance, despite lack of active use during the specific year. en-us Thu, 31 Aug 2000 00:00:00 +0530 Fri, 17 Jul 2009 13:04:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14585 The High Court of Delhi upheld the decision to allow depreciation on machinery not actively used during the assessment year 1971-72. The court emphasized that depreciation aims to compensate for wear and tear on assets used in business, including passive utilization. It noted that depreciation is essential to accurately reflect business profits by considering asset deterioration. The court affirmed the Tribunal's decision, stating that maintaining machinery for potential use justifies depreciation allowance, despite lack of active use during the specific year. Case-Laws Income Tax Thu, 31 Aug 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14585