1984 (2) TMI 26

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....red by KAPUR J.-For the assessment year 1965-66, the following question has been referred to this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the provisions of section 154 of the Income-tax Act, 1961, could not be invoked for reducing the depreciation allowed in completing the assessment originally ? " The facts of the c....

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....tion had to be allowed at half the rates. On consideration of the annual reports of the assessee company, the AAC was also of the opinion that depreciation had to be allowed at half the rates for three months only during the assessment year. The Tribunal, in disposing of the second appeal, came to the conclusion that the plant and machinery situated at Kandla was always ready for use, but restr....

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....aining from time to time. Probably, there was no active use of the machinery in the first few months of the year. But active use is not an essential criterion for an assessee to be entitled to depreciation. Then the Tribunal referred to various judgments. The Tribunal came to the conclusion that active and passive use of machinery both equally entitled the assessee to depreciation. Sectio....