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TMI Blog1984 (2) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year 1965-66, the following question has been referred to this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the provisions of section 154 of the Income-tax Act, 1961, could not be invoked for reducing the depreciation allowed in completing the assessment originally ? " The facts of the case are that the assessee was carryi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates. On consideration of the annual reports of the assessee company, the AAC was also of the opinion that depreciation had to be allowed at half the rates for three months only during the assessment year. The Tribunal, in disposing of the second appeal, came to the conclusion that the plant and machinery situated at Kandla was always ready for use, but restrictions by the Government had resulted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no active use of the machinery in the first few months of the year. But active use is not an essential criterion for an assessee to be entitled to depreciation. Then the Tribunal referred to various judgments. The Tribunal came to the conclusion that active and passive use of machinery both equally entitled the assessee to depreciation. Section 32 of the Act provides that depreciation all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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