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| The Tax Publishers2020 TaxPub(DT) 3404 (Del-Trib) INCOME TAX ACT, 1961
Section 32
Where farm house of assessee was already entered in block of assets “Building” then it lost its identity and use in first year of purchase was relevant and not in relevant assessment year, as depreciation is granted to the entire block of assets, whether or not any individual item therein has been used during the year or not.
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Depreciation - Allowability - Farm house used for business meeting - Revenue challenged that Use was few occasions
Assessee-company was engaged in manufacturing of auto parts. It claimed depreciation on farm-house on grounds that it was used for business meetings with buyers, staff conferences etc., therefore it was used for business purposes and depreciation on same was to be allowed. Revenue denied depreciation on allegation that use of farm house on few occasions for business purposes, would not convert character of same into office.Held: Depreciation is granted to the entire block of assets, whether or not any individual item therein has been used during the year or not. Where farm house was already entered block of assets “Building” then it lost its identity and use in first year of purchase was relevant and not in relevant assessment year.
Followed:CIT v. Sonic Biochem Extractions Pvt. Ltd. ITA No.2088 of 2013 dated 17-11-2015 and Johnson Matthey Chemicals India Pvt. Ltd. v. Dy. CIT 2017 TaxPub(DT) 5608 (Pune-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-06
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