2015 (10) TMI 487

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....ne of the units was established at Nasik, which manufactured polyester chips. The second unit was also established at Nasik, which manufactured poly films and the third unit was set up in Silvasa, which was engaged in photo processing. The assessee filed a return showing a loss, which was not accepted and an assessment order was passed on 31st March, 1999 disallowing the depreciation claimed by the assessee on the ground that the plants were not fully installed at Nasik and were also not put to use and were not ready for production. The Assessing Officer held that the assessee was not entitled to claim deduction on depreciation for the Poly chips plant at Nasik and Bopet poly film plant at Nasik. The Assessing Officer also disallowed foreig....

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....ts, 2010 (236) CTR 329 a Division Bench of this Court held that the assessee was entitled to claim depreciation on plant and machinery, even though it was used during the year for trial production. Once a finding has been given by the Tribunal that the assessee has operated the plant during the relevant previous year, the assessee became entitled for depreciation and was rightly allowed by the first appellate authority. The finding arrived at is based on findings of fact and, consequently, no substantial question of law arises. In Commissioner of Income Tax Vs. Swarup Vegetable Products India Ltd., 2005 (277) ITR 60, a Division Bench of this Court held that the assessee was entitled for depreciation even where the plant or machinery was ke....