Assessee company did not do any hotel business after its hotel building was washed away in floods in September, 1995. However, assessee company being a juristic entity incorporated under the Companies Act, did not cease to exist. Since it has to fulfill its obligations imposed by Companies Act till it is wound up, some staff has to be maintained. Therefore, once the assessee company is in existence, it is entitled to depreciation though it has discontinued its business.
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