S. 32/ 43(6): Even assets installed in a discontinued business are eligible for depreciation as part of 'block of assets'

CIT vs. Sonic Biochem Extractions Pvt. Ltd (Bombay High Court)

Once the concept of block of assets was brought into effect from assessment year 1989-90 onwards then the aggregate of written down value of all the assets in the block at the beginning of the previous year along with additions made to the assets in the subject Assessment Year depreciation is allowable. The individual asset loses its identity for purposes of depreciation and the user test is to be satisfied at the time the purchased Machinery becomes a part of the block of assets for the first time