Case Law Details
Indorama Industries Limited Vs ITO (ITAT Delhi)
ITAT Delhi held that as per definition of block of assets u/s. 43(6)(c) of the Income Tax Act there is no condition that the plant and machinery must have been put to use for claiming depreciation.
Facts- In course of assessment proceedings, the Assessing Officer, while examining assessee’s claim of deprecation, noticed that the assessee has capitalized investment made in plant and machinery in the second half of the year and claimed depreciation thereon.
AO was not fully convinced with the details furnished by the assessee. He was of the view that evidences furnished by the assessee do not conclusively prove that the plant and machinery were put to use before the end of the financial year and commercial production has commenced. Accordingly, he disallowed the claim of depreciation for an amount of Rs.64,76,819. Though, the assessee contested the aforesaid disallowance before learned Commissioner (Appeals), however, it was unsuccessful.
Conclusion- On a reading of section 43(6)(c) of the Income Tax Act, we find that as per the definition of block of assets therein, there is no condition that the plant and machinery must have been put to use. The only condition is that the assets must have been acquired during the relevant year.
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