Section 10(2)(vi) of the Indian Income-tax Act, 1922

Section 10(2)(vi) of the Indian Income-tax Act, 1922 — the law in short

What the courts have decided on section 10(2)(vi) of the Indian Income-tax Act, 1922, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• Capital Bus Service (P.) Ltd. v CIT — passive user: assets kept ready for use are used for the purposes of the business High CourtHelps taxpayerValidity unconfirmed
  Four of my vehicles were kept in running condition all year but were actually plied for barely a month. The Assessing Officer says they were not used, so no depreciation. Is he right?
  No. The Delhi High Court held that 'used for the purposes of the business' bears the wider meaning and includes passive user, so that machinery kept ready for actual use in the business is used for the purposes of the business even if it is not actually worked. Depreciation was allowed on four buses kept ready for use throughout the year although not plied for more than thirty days.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.