2002 (9) TMI 67 - HC - Income Tax

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in directing that the assessee is entitled to depreciation in respect of the ten motor cars purchased on March 30, 1989, and March 31, 1989, even though the assessee had not proved the fact that the assets were used for the purpose of business during the relevant accounting year? The question referred to us is answered in favour of the Revenue and against the assessee.

Summary

The High Court of Madras ruled that the assessee was not entitled to depreciation for ten motor cars purchased at the end of the accounting year as there was no proof of them being used for business purposes. The Tribunal's decision to allow depreciation was deemed incorrect. The judgment favored the Revenue over the assessee.