Hindalco Industries Ltd. v. Dy. CIT (2024)114 ITR 502 (Mum)(Trib)

S. 32 : Depreciation-Trial runs-Aircraft put to use in subsequent year for training purposes-Depreciation and maintenance is allowable. [S. 37(1)]

Held that the trial run of the aircraft was obviously for the purpose of business and nothing else. As the statute did not prescribe a minimum time-limit for “use” of the machinery, the assessee could not be denied the benefit of depreciation on the ground that the aircraft was used for a very short duration for trial run. Consequently, depreciation and maintenance expenses of the aircraft was held to be allowed as a deduction. (AY.2003-04)

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