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TMI Blog1946 (1) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... bility company. During the whole of the year of account (1942-43) it carried on business in electrical stores and in the distribution of electricity. For part of the year, namely, from the 23rd January, 1942, to the 31st March, 1942, it also carried on an oil mill business. Although the oil mill had only worked for two months and seven days in the year of account, the company claimed to be entitle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly used the plant and machinery for the purposes of his business in the previous year only for a period of two months and seven days, the assessee can be granted a depreciation allowance under Section 10(2)(vi) for the whole period of the previous year in question? While conceding that there is no indication in clause (vi) of sub-section (2) of Section 10 that the allowance for depreciation i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the amount which would be allowable if such building, machinery, plant or furniture was wholly so used. This sub-section only makes provision to meet a situation where the machinery is used in part for the business of the assessee and in part for other purposes. In this case the machinery of the oil mill was used wholly for the assessee's business. The word wholly does not mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the judgment in this case supports his argument, but we do not agree. There the appellant company had taken over the business of another company as and from the 2nd December 1936. The company whose business was taken over had worked at a loss and its unappropriated depreciation allowance stood at a very large figure. The contract between the two companies contained a clause assigning to the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred in the affirmative. We may add that this interpretation of the section will not affect the Income-tax authorities detrimentally. The depreciation can only be allowed to the extent of the cost of the machinery and the allowance of the full amount for the year of account will mean that the benefit conferred on the assessee by Section 10(2)(vi) will be more quickly worked out. The Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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