1946 (1) TMI 8

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....Viswanatha Ayyar JUDGMENT Leach, CJ. The assessee is a limited liability company. During the whole of the year of account (1942-43) it carried on business in electrical stores and in the distribution of electricity. For part of the year, namely, from the 23rd January, 1942, to the 31st March, 1942, it also carried on an oil mill business. Although the oil mill had only worked for two mont....

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....ether on the facts and in the circumstances of the case when the assessee actually used the plant and machinery for the purposes of his business in the previous year only for a period of two months and seven days, the assessee can be granted a depreciation allowance under Section 10(2)(vi) for the whole period of the previous year in question?" While conceding that there is no indication in cla....

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...., profession or vocation, the allowance shall be restricted to the fair proportional part of the amount which would be allowable if such building, machinery, plant or furniture was wholly so used." This sub-section only makes provision to meet a situation where the machinery is used in part for the business of the assessee and in part for other purposes. In this case the machinery of the oil mi....

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....e by way of tax, one has to go to Section 10. Mr. Rama Rao Saheb has suggested that the judgment in this case supports his argument, but we do not agree. There the appellant company had taken over the business of another company as and from the 2nd December 1936. The company whose business was taken over had worked at a loss and its unappropriated depreciation allowance stood at a very large fi....