Depreciation

Depreciation has to be charged from the day asset is put to use in the business. No matter whether the business is nill or not, it has to be charged

Depreciation is charged for the following reasons:

1.Internal Reasons like wear and tear & depletion

2.External Reasons like Obsolescence, Passage of time and accident.

In this case depreciation is charged due to passage of time
 

Kindly refer the AS 6 Para 3.1. Relevant text reproduced below:

Depreciation is a measure of the wearing out, consumption or other

loss of value of a depreciable asset arising from use, effluxion of time or

obsolescence through technology and market changes.

Thus depreciation need to be charge even when it is not used for whole year.