2011 (1) TMI 393 - HC - Income Tax

Depreciation - Whether full depreciation would be permissible in block of assets method even though the assets are used for a very short period - Whether depreciation can be denied for non use of assets in cases of an industry having two units functioning in the relevant assessment year, even though one unit may not have worked for most of the year - As per the case of JCT Electronics Ltd. v. Deputy Commissioner of Income Tax, the present appeal is dismissed against of revenue.

Summary

The appellant filed an appeal under Section 260A of the Income Tax Act against an order passed by the Income Tax Appellate Tribunal. The appeal raised questions regarding depreciation on assets used for a short period and non-use of assets in a two-unit industry. The High Court dismissed the appeal based on a previous order in a similar case.