1935 (7) TMI 21

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..... are not in dispute, and the only question for determination before us is whether the assessee, Rao Bahadur Bhikaji Venkatesh, was entitled to any allowance in respect of depreciation of buildings, machinery, plant or furniture under Sec. 10(2)(vi) of the Act for the year in respect of which the assessment was made. Rao Bahadur Bhikaji Venkatesh owns a ginning factory at Yeotmal and has joined a .....

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..... n be made for depreciation. This is the view that has been taken in Radha Kishen & Sons v. Commissioner of Income Tax, Punjab. The learned Counsel for the assessee contended that the words "used for the purpose of the business", occurring in Sec. 10(2) (iv), were general and only meant "such as were generally used or might be used for the purposes of the business" and not &quo .....

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..... me Tax, Punjab, appears to us to be in point. There, as in the present case, the machinery, plant and buildings belonging to the Sri Gopalji Company were not actually used in the business which was carried on by the company during the year, but were used for the purposes of other business, and it was held that the company could not claim any allowance on account of depreciation. The case in Sadhuc .....

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..... ly used during the year or were lying idle; in other words, if they were lying idle, insurance would presumably be effected at a very much lower rate. We do not think, then, that any safe deduction can be made from clause (iv) of Sec. 10(2) with regard to clause (vi) of that Section. We must hold, as indicated above, that in the latter clause, though the words "such buildings, machinery, plan .....

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..... ing in clause (iv) of that section, mean "actually used" and that in a case such as the present, where the buildings, plant and machinery were not actually used during the year no allowance can be granted on account of depreciation. Under Sec. 66(5) of the Act we deliver judgment accordingly and send a copy to the Commissioner under the seal of the Court. Costs of the reference shall be .....

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