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Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/rate of - Assessee-company claimed depreciation on Tetrapack machine - Assessing Officer disallowed its claim on ground that said machine was lying idle - Commissioner (Appeals) upheld order of Assessing Officer - However, Tribunal accepted assessee's claim on ground that machine was not sold, discarded or demolished and was kept ready for use - Whether since keeping of machine in readiness was a finding of fact, machine would be deemed to have been used within meaning of expression contained in section 32 and, therefore, Tribunal was justified in allowing assessee's claim - Held, yes CASES REFERRED TO Speed Automobiles (P.) Ltd. v. Asstt. CIT [2004] 32 ITC 531 [Para 7], CIT v. Speed Automobiles (P.) Ltd. [2004] 32 ITC 537 (MP) [Para 7], CIT v. Geo Tech Construction Corpn. [2000] 244 ITR 452/112 Taxman 373 (Ker.) [Para 7] and CIT v. Refrigeration & Allied Industries Ltd. [2001] 247 ITR 12/[2000] 113 Taxman 103 (Delhi) [Para 7]. R.L. Jain and Ms. Veena Maldlik for the Appellant. G.M. Chaphekar and D.S. Kale for the Respondent. ORDER S.K. Kulshrestha, J. - Since common questions have been formulated in the above two appeals, which are similar except for the assessment year, both these appeals are being decided by this common order. 2. The questions of law formulated in Income-tax Appeal No. 65/2003 are as follows:- "(1) Whether the ITAT was justified in holding that the assessee was entitled to claim depreciation on the machine-Tetrapack and claimed deduction amounting to Rs. 28,87,651 when even according to the assessee the said machine was not put to use during the relevant year in question ? (2) It is obligatory upon the assessee to actually use or put the machinery into use before claiming depreciation under section 32 of the Income-tax Act or mere purchase of a depreciable item in a particular assessment year entitles the assessee to claim depreciation in the relevant assessment year ?" 3. The assessee is engaged in the business of solvent extraction and de-oiled cake simultaneously with the production and sale of Soya-milk. The assessee, in its return, declared its income nil, after…

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