Depreciation

When the machine was sold it must have beeen reduced from the block of assets and when the sale is not completed it must be returned back to the same block of assets and depreciation can be claimed whether or not put to use as it was old machine of the block for which sale could not be completed and so put to use criteria is not to be seen.

I AGREE WITH THE ABOVE VIEW

YES AGREE WITH TOUFIQUE

Am also agree with Toufique 

yes it will be added back n depreciation will be allowable

Depreciation is allowable because assume if it was not sold and remains in Block of Assets, than also we have to  take  depreciation on it because depreciation is also provided due to  effluxion of time on Old Fixed Assets,therefore depreciation is also allowable on it.

I also agree with the view given by toufique.