2017 (10) TMI 732 - SCH - Income Tax

Additional depreciation claim @ 20% under Section 32 1 (iia) - machinery purchased before 31st March 2005, but installed after 31st March 2005 ? - Held that - SLP dismissed. HC order confirmed 2017 (2) TMI 644 - GUJARAT HIGH COURT saying that the provision of section 32(1)(iia) of the IT Act is required to be interpreted reasonably and purposively as the strict and literal reading of section 32(1)(iia) of the IT Act will lead to an absurd result denying the additional depreciation to the assessee though admittedly the assessee has installed new plant and machinery. Under the circumstances, no error has been committed by the learned ITAT in allowing the additional depreciation at the rate of 20% on the plant and machinery installed by the assessee after 31st Day of March 2005 i.e. the year under consideration. No substantial question of law arise. - Decided in favour of the assessee