User test and allowance depreciation

Depreciation is necessary to be allowed to compute income over a period of time therefore, there always was a legislative intention to use both words 'use and used' when the Income-Tax Act was passed in the year 1961. The paper would explore the evolution of ‘user test’ and allowance of depreciation under the Section 32 of the Income Tax Act, 1961. We have analysed in the paper the various areas dealing with user test and tried to understand the legislative intention when the Act was passed in dealing with the connotations “used” and “ready to use”. Finally the paper would looks into the judgments of High Courts and the Apex Court while dealing with lacuna of allowance of depreciation and the user test. We have adopted the descriptive research attempt to describe systematically a situation, related to the problems in the disparity in use of the word “used” under the section 32 of the Income Tax Act, 1961. It is a secondary form of research involving various books, articles, reports, Acts, cases and internet sources. Also we have deduced conclusions on allowance of depreciation and the user test. Therefore the paper adopts the doctrinal method as research methodology and gives a normative account on the subject. Unbiased and objective analysis on the topic wherein each step is taken in an unbiased manner and each conclusion is drawn to the best of our ability and without introducing our own vested interest.