building machinery

The assessee purchased machinery which was not put to use during the year though it formed a part of the “block of assets”. On the question whether depreciation on the said machinery was allowable, the Tribunal held that once a particular asset falls within the block, it is added to the WDV and depreciation is to be allowed on the block. Full Article

Everything revolves around clause (iii) of section 32(1). The said clause provides that in case any of the assets specified therein on which depreciation is claimed and allowed under clause (i), is sold, discarded, demolished, and if the monies payable fall short of the w.d.v, such shortfall will be allowed Full Article

SUMMARY OF CASE LAW The unabsorbed depreciation for the assessment years 1993-94 to 1995-96 pertains to the period ended before 1-4-2001 and the same could not be set off against the income of the assessment year for 2003-04 as per section 10A(6). CASE LAW DETAILS Decided by: ITAT, `F’ BENCH, NEW DLEHI In The case [...] Full Article

SUMMARY OF CASE LAW In cases where Rule 8 applies, the income which is brought to tax as “business income” is only 40 per cent of the composite income and consequently, proportionate depreciation is required to be taken into account because that is the depreciation “actually allowed”. CASE LAW DETAILS Decided by: SUPREME COURT OF [...] Full Article