https://www.taxtmi.com/caselaws?id=19277 The High Court of Bombay ruled in favor of the Revenue, denying the assessee's claim for initial depreciation on machinery not put to use during the relevant year. The court held that depreciation allowance under section 32(1)(vi) of the Income-tax Act is contingent upon actual use of the machinery for business purposes. It rejected the argument that depreciation could be claimed in the year of installation, emphasizing that if there is a gap of more than one clear previous year between installation and use, no depreciation can be claimed. The court's decision was in line with the interpretation that depreciation is only allowable when the machinery is utilized for business activities. en-us Thu, 17 Sep 1992 00:00:00 +0530 Thu, 05 Nov 2009 11:42:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19277 The High Court of Bombay ruled in favor of the Revenue, denying the assessee's claim for initial depreciation on machinery not put to use during the relevant year. The court held that depreciation allowance under section 32(1)(vi) of the Income-tax Act is contingent upon actual use of the machinery for business purposes. It rejected the argument that depreciation could be claimed in the year of installation, emphasizing that if there is a gap of more than one clear previous year between installation and use, no depreciation can be claimed. The court's decision was in line with the interpretation that depreciation is only allowable when the machinery is utilized for business activities. Case-Laws Income Tax Thu, 17 Sep 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19277