Considering the actual working days of machinery for the purpose of no. of days for `put to use` and restrict depreciation u/s 32 of IT Act

12:18 AM
*Business Expenditure*
*Deputy Commissioner of Income Tax Vs. Siv Industries Ltd. * 10/29/2007
[2008] 306 ITR 114 (Mad)

Case Fact: Whether the learned commissioner was justified in considering the
actual working days of machinery for the purpose of no. of days for `put to
use` and restrict depreciation u/s 32 of The Income Tax Act,1961 to 50%?

Decision: Held by the Hon`able Court that the term `put to use` cannot be
construed as actual working days. The date of first user shall be considered
for the purpose of `put to use` for determing the period of more than 180
days. Full depreciation shall be allowable u/s 32 of the income tax Act,
1961 for machinery used or kept ready for use for 180 days.

Share this

Related Posts

Previous
Next Post »