Depreciation u/s 32 in respect of plant and machinery. - Income Tax - 415/CBDT

INSTRUCTION NO. 415/CBDT Dated: May 12, 1972 Section(s) Referred: 32 Statute: Income - Tax Act, 1961 Reference is invited to Board's letter No. 9/43/68-IT(Audit) dated the 28th February 1970 regarding the review of cases of concerns manufacturing safety razor blades for ensuring that depreciation allowance in respect of machinery and plant installed in such concerns is allowed at the general rate of 7 per cent. 2. It has since been brought to the notice of the Board the machinery and plant used for manufacturing safety razor blades broadly falls in the following 3 categories:- (a) Machine tools. (b) Electrical machinery. (c) General machinery. Under the rates of depreciation applicable for the assessment year 1969-70 and earlier years, depreciation in respect of machinery and plant mentioned at (a), (b) and (c) above is admissible at the rate of 12 per cent, 10 per cent, and 7 per cent respectively. In view of this position the instructions contained in Board's letter under reference regarding the application of the general rate of 7 per cent in such cases may please be treated as modified accordingly. 3. For the assessment year 1970-71 and later years depreciation in respect of machinery and plant installed in concerns manufacturing safety razor blades is to be allowed in accordance with the Table of rates as revised under the I.T. (Sixth Amendment) Rules, 1969. In this connection it may be noted that under the new Table special rates of depreciation have been prescribed in respect of machinery and plant specified under item III(ii) of the Table and a general rate of 10 per cent is applicable to machinery and plant (not being a ship) for which no special rate is prescribed. 4. These instructions may please be brought to the notice of all I.T. Officers in your charge.