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Tax Publishers
Asset once entered in block is eligible for
depreciation
TaxPub Creative Cell
Once an asset is included in the block of assets, it
remains in block for its entire life. It is not necessary that plant and
machinery owned by assessee should be actually put to use in the relevant
accounting year to justify the claim of depreciation and that even if the plant
and machinery or other asset is kept ready for use in the assessee's business,
the assessee would be entitled to depreciation. In assessee's case, due to adverse
business conditions it became sick and suspended operations temporarily,
however, during the year under consideration it succeeded in raising funds and
started refurbishing the plant and machinery. The Fixed Assets were still lying
in the control of assessee and the company was trying to revive its business
and had gone for one time settlement, it showed that business was temporarily
shut down due to heavy losses. Accordingly, assessee's claim of depreciation
was allowable.--See Natural Biochemicals and Foods Ltd. v. Asstt. CIT 2021 TaxPub(DT) 5611 (Hyd-Trib).
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