work is worship (Service) (2728 Points)
08 May 2012HI All
I have not understood the below case law,
CIT Vs Yamaha Motor India
"(Would the phrase " used for purpose of business" in respect of discarded machine include use of such assiet in the earlier year for claim of depreciation).
kindly explain with example.
Thanks in advance
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 08 May 2012
It means that whether the machine was being used in the earlier years for the purpose of the business, as depreciation can be claimed only if the machine is being used wholly for the purpose of carrying on the business. if it was used in the earlier other than the purpose of the business then the depreciation claim would be disallowed.
Therefore in the above case, the said phrase is being used.
CAclubindia
