2017 (3) TMI 1964 - HC - Income Tax

Eligibility to balance 10% of additional depreciation under Section 32(1)(iia) - claim of carry forward to next AY - number of days of use - HELD THAT - As the issue raised in the captioned appeals is covered by the judgment of this Court rendered M/s. Shri T.P. Textiles Private Limited 2017 (3) TMI 739 - MADRAS HIGH COURT M/s. Brakes India Limited 2017 (4) TMI 511 - MADRAS HIGH COURT and M/s. Multivista Global Limited 2017 (4) TMI 411 - MADRAS HIGH COURT as held that word new which precedes machinery or plant is indicative of the type of asset on which additional depreciation can be claimed. In our opinion it does not in any way limit or restrict the claim for additional depreciation to the previous year in which the said asset is installed and used. Accordingly in our view the Assessee cannot be prevented from claiming balance additional depreciation in the following year thus decided in favour of assessee Accordingly the appeals are allowed and the impugned judgment of the Tribunal is set aside.

Summary

The Madras High Court, comprising THE HONOURABLE MR. JUSTICE RAJIV SHAKDHER and THE HONOURABLE MR. JUSTICE R. SURESH KUMAR, rendered a judgment in favor of the appellant. The legal representatives for the appellant and the respondent were Mr. Venkatnarayanan for M/s. Subbaraya Aiyar and Mr. T. Ravi Kumar, Standing Counsel, respectively. The court recognized that the issues in the appeals were already addressed in prior judgments, specifically in T.C.A. No. 157 of 2017, T.C.A. No. 551 of 2013, and T.C.A. No. 402 of 2013. Consequently, the appeals were allowed, and the Tribunal's impugned judgment dated 02.01.2013 was set aside. The court ordered that there would be no costs associated with this judgment.