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TMI Blog2013 (3) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... t mean that assessee is not entitled for depreciation. The word 'used' would include actual use or at least keep ready for use which would mean that non-user even for temporary period qualifies for being treated as 'user', which embraces 'passive' user. Regarding depreciation of flat no. 1(4WA) and 111(5E) assessee is providing hospitality in these two flats to the customers of assessee for its business and it has provided guest house facility. The assessee has filed copies of lease agreement between assessee and Biva Park Radiology Pvt. Ltd. for lease of medical instruments and appliances. The assessee has also filed copy of lease agreement received in respect of medical instruments and appliances during the year ending on 31.03.2001, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed by the Ld. CIT(A) may kindly be deleted. Even otherwise and without prejudice the disallowance made was highly excessive and wholly unreasonable." 3. We have heard rival submissions and gone through facts and circumstances of the case. Brief facts leading to the above issue are that the assessee claimed depreciation on two flats as well as medical instruments given on lease. AO concluded that the assessee failed to produce any evidence that these two flats were used for the purpose of business or the medical instruments claimed to have been used for the business, was not actually used for the business. Accordingly, AO disallowed depreciation to the tune of Rs.22,30,944/-. Aggrieved, assessee preferred appeal before CIT(A), who confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machine and Angio machine were claimed in last two years as these machinery were leased out to Biva Park Radiology Pvt. Ltd. and earning lease rentals from last two years but during April, 2003 due to internal problem the lessee company temporarily closed their business and after two years, it again started the business and assessee got rental income. No doubt, according to assessee, during this year, these assets were leased out but actually lessee company was unable to use due to closure of business but that does not mean that assessee is not entitled for depreciation. The word 'used' would include actual use or at least keep ready for use which would mean that non-user even for temporary period qualifies for being treated as 'user', whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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