Under “block of assets” even a closed unit is eligible for depreciation

The assessee had two divisions, one at Dombivili and the other at Surat. The division at Surat was closed since two/ three years. The assessee claimed depreciation on the assets of the said Surat division which was rejected by the AO and the CIT (A) on the ground that the assets were not “used” and depreciation could not be allowed. On appeal by the assessee, HELD allowing the appeal: (i) In Gulati Saree Centre 71 ITD 73 (Chd.) (SB), it was held that even after introduction of the concept of block of assets, the identity of individual assets was not lost & the AO could restrict depreci...