TaxTMI 
TaxTMI 
1945 (8) TMI 8
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....h as during the relevant year the Dandot Cement Factory worked only for a period of nearly two months a dispute arose between the assessee and the Income-tax department as to whether in these circumstances the assessee was entitled to claim the full amount allowable under Section 10(2)(vi) which runs as follows:- "In respect of depreciation of such buildings, machinery, plant, or furniture being the property of the assessee, a sum equivalent..... to such percentage on the original cost thereof to the assessee as may in any case or class of cases be prescribed and in any other case, to such percentage on the written down value thereof as may in any case or class of cases be prescribed." The contention of the assessee was that th....
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....is not actually worked. To my mind, it is so used. The business from which the profits were derived was that of ginning factories, and the contribution of the assessee to that business was the obligation to keep his machinery ready for actual use at any moment. It is, no doubt, true, as the learned Advocate-General 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 during the monsoon sea....