Case Law Details
Bharat Mines and Mineral Vs ACIT (ITAT Bangalore)
The issue under consideration is whether under block of assets, the depreciation allowed even for those assets which have not been used during the year under consideration?
ITAT states that the existence of individual asset in block of assets itself amounts to use for the purpose of business. The Tribunal also held that ‘used for the purpose of business’ as provided in section 32(1) of IT Act for the concept of depreciation on block of assets can be summarized by saying that use of individual asset for the purpose of business can be examined only in the first year when the asset is purchased and in subsequent years, use of block of assets for the purpose of business is satisfied on this finding alone that there is existence of asset in the block of assets. In the present case, this is not the case of the AO that some asset of building block and plant & machinery block are not existing in the respective block of assets. In respect of each of these two blocks, the AO is also allowing depreciation in respect of some assets included in these two blocks. Hence in our considered opinion, part amount of depreciation disallowed by the AO in respect of some asset in each of these two blocks is not justified and it is not as per law. Therefore in our considered opinion, depreciation is allowable on both the blocks in full and the same cannot be reduced in the manner done by the AO. Accordingly, the appeal filed by the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal is filed by the assessee and the same is directed against the order of ld. CIT(A)-1, Bangalore dated 04.04.2018 for Assessment Year 2014-15.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
