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Depreciation u/s 32

28 September 2011

Dear All,

Please help me with any case laws for taking the benefit of full depreciation rate u/s 32 of the IT act by installing assets / machines on 02nd october of any Financial year and 3rd october in case of leap Financial year (i.e. f.y. 2012).

Regards

Jitendra Jhanwar

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Suraj Agarwal (Self Practitioner in Income Tax & GST) (782 Points)
Replied 28 September 2011

In your case, the period of holding is 181 days, which is more than 180 days. So you can entertain the full depreciation on the machinery. But if there is any problum in regards to "USE" & "put to use", then you can refer the following cases :-

Vishwanath Bhaskar Sathe v. CIT 10 ITC 386 (Bom.)

CIT v. Vindhyachal Distilleries (P.) Ltd. [2005] 147 Taxmann 127 (MP)