1937 (3) TMI 11

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....ch raises a question lying in a very small compass but one easier to state than to answer. It appears that the assessee, during the year of assessment, which was the year ending March 31, 1936, owned a ginning factory in Dhulia, and he was a member, with the owners of other ginning factories, of a pool. The Commissioner finds as a fact, that during the year of assessment the factory of the asse....

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....m remove or permit to be removed any such gins or machinery at Dhulia to any other place or places : Provided always that any of the parties hereto shall be at liberty if they so desire to close his or their factory or factories and dispense with his or their staff and workmen for any period during the contract period, retaining nevertheless his or their right to receive his or their share in the ....

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....such " machinery, plant or furniture means, we have to refer to sub-sec. (iv) of Sec. 10 (2) which authorises an allowance in respect of insurance of machinery, plant and furniture used for the purposes of the business. The question, therefore, resolves itself into this-was the machinery of the assessee during the year of assessment used for the purposes of the business from which his profit was d....

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....eneral says, that it is possible to give the word "used" a more limited meaning and hold that it includes only the actual work of the machinery, and it is urged that it is that working which occasions depreciation. But I think that the word "used" in this section may be given a wider meaning and embraces passive as well as active user. Machinery which is kept idle may well depreciate, particularly....