Trial production machineries kept ready for use qualifies for depreciation

Tenzing Match Works Vs DCIT (Madras High Court)

Even trial production machineries kept ready for use etc., were considered to be used for the purpose of business to qualify for depreciation. In ‘CIT -Vs- Geo Tech Construction 244 ITR 452 (Kerala)’ , the machinery which was purchased by the assess from Pondicherry was yet to reach work site at Kochi and were in transit, and the Court held that it would amount to passive use and would qualify for depreciation.

FULL TEXT OF THE HIGH COURT ORDER / J

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