ITAT Allows Depreciation on Asset Kept Ready for Use but Actually not Put to Use

Span Air Pvt Ltd Vs ACIT (ITAT Delhi) Introduction: In a significant judgment, the Income Tax Appellate Tribunal (ITAT) Delhi has interpreted the phrase ‘used for the purposes of business’ to include assets ready for use but not actually put to use. The ruling came in the case of Span Air Pvt Ltd Vs ACIT, pertaining to the disallowance of a portion of depreciation under section 32 of the Income Tax Act. Analysis: Span Air Pvt Ltd had claimed full depreciation on a vehicle purchased in 2014, which was ready for use in the first half of the financial year but registered in the second...