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TMI Blog2015 (10) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer has observed as under: "4(ii). The assessee company has claimed additional depreciation on plant and machinery acquired and installed in the preceding years other than the new machinery acquired and installed during the previous year. As per the provisions of section 32 (1)(ii)(a), 'no deduction is allowable to any plant and machinery, the whole or the actual cost of which is allowed as deduction whether by way of depreciation or otherwise, in computing the income chargeable under the head "profit and gains of business or profession' of any one previous year". The additional depreciation u/s 32 is eligible only to any new machinery or plant acquired and installed by an assessee engaged in the business of manufacture and production o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted out that no deduction is eligible to any plant or machinery, whole of the actual cost to which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head "Profits and gains of business or profession" of any one previous year. It is pertinent to point out that the additional depreciation is eligible only to new machinery, or plant acquired or installed and not availed any deduction by way of depreciation or otherwise in the year of such machinery or plant put into use by an assessee. This issue was present in the A.Y. 2008-09 & 2009-10 also in the case of Assessee Company and disallowance was made. Further, CIT (A) as well as ITAT, Chennai bench has upheld this disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute that the additional depreciation claimed by the assessees, for impugned assessment year, were on machinery already acquired during the years 2002-03 to 2004-05 and 2005-06. Thus, in the previous year relevant to impugned assessment year, the machinery were no more new. Claim of the assessees is that under Section 32(1)(iia) of the Act, additional depreciation for new plant and machinery acquired was available in every year after its installation if such installation happened after 31st March, 2005. Said clause (iia) of Section 32(1) is reproduced hereunder:- "32 (1) In respect of depreciation of .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... ... .... ..... ..... ..... ..... .... .... .... . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in various preceding previous years. Therefore, for the impugned assessment year, it is no more a new machinery or plant. Once it is not a new machinery or plant, allowance under Section 32(1)(iia) cannot be allowed. Additional depreciation itself is only for a new machinery or plant. A claim of additional depreciation as made by the assessee, if allowed, will not be an allowance for a new machinery or plant. Intention of the Legislature was to give such additional depreciation in the year in which assets were put to use and not for any succeeding year. There is nothing in the statute which allows such claim of additional depreciation every year on machinery acquired in earlier year. There cannot be any presumption that unless a claim is s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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