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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 ..... der of CIT(A)-XII, Kolkata in Appeal No. 206/XII/12(4)/06-07 dated 05.01.2010. Assessment was framed by ITO, Ward-12(4), Kolkata u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Year 2004-05 vide his order dated 25.12.2006. 2. The first issue in this appeal of assessee is against the order of CIT(A) confirming the disallowance of depreciation on medica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 pref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt underlying the allowance of depreciation is that it should result, as consequence of the machinery being actually used or employed in the earning of income. As regards depreciation claim on Flat No. 1 & III, the appellant failed to furnish any evidences to show that these two flats had been used for the purpose of business. The explanation given is very vogue and devoid of merit. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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', which embraces 'passive' user. Regarding depreciation of flat no. 1(4WA) and 111(5E) the AO did not consider the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances, we are of the view that the depreciation could have been allowed and we allow the same. We reverse the orders of lower authorities on this issue and this issue of assessee's appeal is allowed. 5. The next issue as regards to the order of CIT(A) confirming the disallowance of puja bonus u/s. 43B of the Act made by AO. The Ld. counsel for the assessee fairly conceded that he is not intereste ..... X X X X Extracts X X X X X X X X Extracts X X X X
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