2013 (3) TMI 434

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... appeal by assessee is arising out of order of CIT(A)-XII, Kolkata in Appeal No. 206/XII/12(4)/06-07 dated 05.01.2010. Assessment was framed by ITO, Ward-12(4), Kolkata u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Year 2004-05 vide his order dated 25.12.2006. 2. The first issue in this appeal of assessee is against the order of CIT(A) confirming ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the above issue are that the assessee claimed depreciation on two flats as well as medical instruments given on lease. AO concluded that the assessee failed to produce any evidence that these two flats were used for the purpose of business or the medical instruments claimed to have been used for the business, was not actually used for the business. Accordingly, AO disallowed depreciation to the tu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y used' in terms of the statute. The basic concept underlying the allowance of depreciation is that it should result, as consequence of the machinery being actually used or employed in the earning of income. As regards depreciation claim on Flat No. 1 & III, the appellant failed to furnish any evidences to show that these two flats had been used for the purpose of business. The explanation give....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assets were leased out but actually lessee company was unable to use due to closure of business but that does not mean that assessee is not entitled for depreciation. The word 'used' would include actual use or at least keep ready for use which would mean that non-user even for temporary period qualifies for being treated as 'user', which embraces 'passive' user. Regarding depreciation of flat no.....