Depreciation cannot be denied for Breakdown & Technical Snags during Trial runs of Machineries

Pr. CIT Vs. M/s. Larsen and Toubro Ltd. (Bombay High Court) Once plant commences operation and even if product is substantial and not marketable, the business can said to have been set up. Mere breakdown of machinery or technical snags that may have developed after the trial run which had interrupted the continuation of further production for a period of time cannot be held ground to deprive the assessee of the benefit of depreciation claimed. FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS:- 1. In this appeal under section 260A of the Income Tax Act, 1961 being aggrieved by the ord...