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TMI Blog2015 (8) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied those conditions is entitled to claim the additional depreciation as provided by the said clause (iia) irrespective of its original claim for depreciation having been made under clause (i) of the said section. We do not find any relation of clause (iia) of the said section with the head of deduction claimed by the assessee in the matter of determining whether it is entitled to a claim for additional depreciation. Decided in favour of the assessee. - I. T. A. T. No. 78 of 2014 and G. A. No. 1936 of 2014. - - - Dated:- 20-11-2014 - SOUMITRA PAL AND ARINDAM SINHA, JJ. Ms. Asha G. Gutgutia, Advocate, for the appellant Mr. J. P. Khaitan, Senior Advocate, for the respondent JUDGMENT This appeal was heard extensivel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower necessary for its business of manufacture and production of sponge iron, ingot/ billets, etc., upon having claimed depreciation in respect of its assets under section 32(1) clause (i), i.e., under the rates directed by rule 5(1A) of the Income-tax Rules, 1962, as have been provided for in Appendix I thereof. The assessee's claim for deduction of further depreciation is in terms of clause (iia) of section 32(1). The said clause, as it stood in the relevant assessment year, is set out as under : (iia) in the case of any new machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection (1) of section 32 has been claimed. 1.9 On a perusal of clause (iia) of sub-section (1) of section 32 quoted above, it is crystal clear that clause (iia) mandates that the additional depreciation shall be allowed as deduction under clause (ii). There is no universal independent deduction available under sub- clause (iia) for every type of case. There has been specific mention of clause (ii) in sub-clause (iia) saying that additional depreciation shall be allowed as deduction under clause (ii). There is no mention of clause (i) in clause (iia). Therefore, undoubtedly additional depreciation under clause (iia) is not to be allowed in the cases falling under clause (i). It is also pertinent to note that clause (iia) of sub-section (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Khaitan, learned senior advocate appearing on behalf of the respondent-assessee, has relied on the judgment of the Gujarat High Court in CIT v. Diamines and Chemicals Ltd. [2014] 222 Taxman 218 (Guj), where the Tribunal held as under : 7. We have considered the rival submissions. A perusal of the order of the learned Commissioner of Income-tax (Appeals) more specifically in paragraphs 4.3 to 4.5 of his order clearly shows that the learned Commissioner of Income-tax (Appeals) has relied upon the decisions of the hon'ble Madras High Court in the cases of CIT v. Hi- Tech Arai Ltd. [2010] 321 ITR 477 (Mad), CIT v. VTM Ltd. [2009] 319 ITR 336 (Mad) Texmo Precision Castings (refer to supra) for the purpose of holding that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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