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2004 (10) TMI 58 - MADRAS HIGH COURTDepreciation - 100% depreciation on purchase of bottles and crates - Deposits received by the respondent/assessee from the agents and retailers – In respect of depreciation, held that each bottle was an independent unit and was not dependent for its user on the availability of other bottles whether empty or filled. The use of one bottle was not interconnected with the use of other bottles. Since each bottle was an individual unit and all bottles together did not constitute a single integrated unit depreciation under the proviso to section 32(1)(ii) is allowable – In respect of deposits, Revenue contention that the "empty bottles return security deposits" received from the agents and retailers are trade receipts, is liable to be rejected and the said amount is not taxable in the hands of the assessee. The Tribunal was, therefore, right in holding that the security deposits received from the agents and the retailers are not taxable in the hands of the assessee.
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