A company manufactures Sponge Iron. During the previous year the Company installed Machineries for manufacture of
Bricks. The purchases of Machineries for Bricks were during the period April 09 - Sept 09. The production of Bricks
began in Decemeber 09. The Company prepares one Set of Books of Accounts for the both the business. Can the
Company claim depreciation at full rate of 15% on purchases during the period April 09 - Sept 09, though the production
of Bricks began in December 09???
The important test is when the machinery were put to use? Whether they were ready for production before september? It ahs been judicially held in many cases that even passive use of machinery is eligible for depreciation.