Depreciation cannot be disallowed for temporary closure of Business

Ishwar Builders Pvt. Ltd Vs DCIT (ITAT Delhi) The issue under consideration is whether disallowance of depreciation on car and interest on car loan by AO is justified in law? In the present case, the depreciation have been disallowed by the Assessing Officer solely on the ground that during the year under consideration, the assessee did not carry out any business activity. The disallowance was confirmed by the ld. CIT(A). ITAT states that the depreciation has been claimed by assessee on the written down value of the asset which means that in earlier years, the asset was used for the purposes o...