1992 (9) TMI 6

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....ear ?" The assessee claimed in the assessment year 1976-77 initial depreciation on two machines--crankshaft grinding machine and air compressor---valued at Rs. 2,41,281. The machinery was installed in 1975 and the production started in the year 1977. The Income-tax Officer refused the allowance on the ground that the conditions laid down in section 32(1)(vi) of the Income-tax Act were not fulfilled because the machinery was not actually put to use in the accounting year previous to the assessment year. We reproduce for ready reference the material part of section 32(1) : " 32.(1) In respect of depreciation of buildings, machinery, plant or furniture owned by the assessee and used for the purposes of the business or profession, the ....

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.... for the purposes of the business" and the language used in clause (vi), it seems to us that unless the machinery is actually put to use for the purposes of business of the assessee, the depreciation allowance is not to be granted. This view is fortified by a decision of the Gujarat High Court in the case of CIT v. Suhrid Geigy Ltd. [1982] 133 ITR 884. Inviting our attention to the following words of clause (vi) : " in respect of the previous year in which the ship or aircraft is acquired or the machinery or plant is installed, or if the ship, aircraft, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year," Shri Thakar, learned counsel for the assessee, submitted th....