No depreciation allowable on ‘identifiable fixed assets if not used for Business purpose at all’

In the present case A.O. disallowed the depreciation of Rs.2532656/- on fixed assets of ‘Jorhar Unit’ of Pan Parag India Ltd due to non running of unit since A.Y.2008-09 which is itself admitted by the assessee. On appeal by Assessee, first appellate authority deleted the disallowance of depreciation on the basis that the assets were put to use in earlier years and depreciation was also allowed in earlier years. Aggrieved by the decision, revenue filed the appeal before Tribunal. Held that Section 38(2) empowers the Assessing Authority to disallow fairly proportionate part of deductions un...