TaxTMI 
TaxTMI 
2012 (4) TMI 377
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....er for the sake of convenience. 2. Brief facts of the case are that the assessee company was incorporated on 12.3.1992 to carry on the business of Aqua Farms and Shrimp Farming. The name has been subsequently changed in 1997 to Coromandal Bio Tech Industries P Ltd. and the assessee entered the business of handling transportation. 3. For the assessment years 2001-02 and 2002-03, the assessee filed its return of income declaring loss at Rs. 34,17,304/- and Rs. 42,13,847 respectively. The returns of income filed by the assessee were assessed u/s 143(1). Later it was found that the assessee had claimed depreciation on Ponds and Plant & Machinery which business is discontinued long back. Accordingly, as per the Assessing Officer, the claim of ....
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....ing that previous year together with the amount of scrap value if any, so however, that the amount of such reduction does not exceed the written down value. It is the assessee's contention that since no money has become payable in respect of such asset they continue to form part of the block of assets. In the case of the assessee, the assets form the block of assets and once the assets enter into the block of assets depreciation on the block should be allowed. 7. The assessee relied on the following decisions: 1. Packwell Printers v. ACIT (59 ITD 340) (Jabalpur) 2. ITO v. Asian Steel Yard, ITAT Mumbai (SNC) (ITA No.188 of 1991) 3. Inductotherm India Limited v. DCIT [2000] 73 ITD 329 ) Ahmadabad 4. JCIT v. City Corn Overseas Softwar....
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....block system for allowing depreciation, the depreciation is allowable on entire block even if some of the assets of block have not been used. The AR drew our attention on CBDT Circular No.469 dated 23rd Sept. 1986 which has been issued by the CBDT at the time of insertion of block system of depreciation by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986. 12. The learned counsel for the assessee Shri P. Murali Mohan Rao further submitted that by new scheme for allowing depreciation from assessment year 1989-90, section 43(6) has been inserted which provides that depreciation shall be worked out on WDV as per the above section. The AR further submitted that the word 'used' appearing in section 32 means the use of....
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....wed. 14. The DR relied upon the following decisions for his contentions: - CIT v. JH Gotla 156 ITR 323 wherein the Apex Court laid down the rule of interpretation of a statutory provision. - CIT v. Udaipur Mineral Development Syndicate P Ltd. 269 ITR 263 (Raj.) wherein it was held that when machinery in question was not put to use in year under consideration i.e. assessment year 1984-85 even for a day and business remained closed, depreciation was not allowable. - CIT v. Maps Tours & Travels (260 ITR 655) (Mad.), where u/s section 32 of the IT Act 1961 depreciation allowance was not allowable to the assessee where assessee bought cars on last day of accounting year and had not registered same for being brought on roads and there being n....
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....lock of assets itself amounts to use for the purpose of business. This view is fully supported by various provisions of the Act which were amended consequent to the scheme of depreciation on block of assets including to the proviso to section 32 of the act. The said proviso to section 32 requires that where an asset is acquired by the assessee during the previous year and is put to use for the purposes of business or profession for a period of less than one hundred and eight days in that previous year, the deduction under this sub section in respect of such asset shall be restricted to fifty percent of the amount calculated at the percentage prescribed for an asset under clause (i) or clause (ii) or clause (iia) as the case may be. When an ....