The Tax Publishers2020 TaxPub(DT) 4736 (Bang-Trib)

INCOME TAX ACT, 1961

Section 32(1)

For interpretation of the term 'used for the purpose of business', it is enough if asset is ready for use and actual use is not a pre-condition, accordingly, AO should have allowed claim of depreciation on the building ready to use as per Final Completion Certificate of the building.

Depreciation - Allowability - Assets ready to use v. put to use -

Assessee claimed depreciation on certain building. AO disallowed assessee's claim alleging that said building was not put to use by assessee in the concerned year. Assessee contended that Final Completion Certificate of the building was dated 24-9-2013 and the building was ready to use. Held: For interpretation of the term 'used for the purpose of business', it is enough if asset is ready for use and actual use is not a pre-condition, accordingly, AO should have allowed claim of depreciation on the basis that building was put to use for the purposes of business on 24-9-2013, i.e., date of completion.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Section 36(1)(iii)

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