9911796707
TMI Blog2014 (9) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... capital expenditure, in accordance with the directions of the ITAT in the earlier years. Additional depreciation claim - when the assessee has used plant and machinery less than 180 days whether it will be eligible to carry forward the remaining balance of additional depreciation to next year or not - Held that:- In the present case the assessee used new plant and machinery below 180 days and therefore, additional depreciation shall be allowed only 50%. See M.M. Forgings Ltd. v. Addl. CIT [2011 (1) TMI 203 - MADRAS HIGH COURT ] - Decided partly in favour of assessee - I.T.A.No.729/Mds/2014, I.T.A.No.1328/Mds/2014 - - - Dated:- 26-9-2014 - Shri A. Mohan Alankamony, Accountant Member Shri V. Durga Rao, Judicial Member Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own case in I.T.A. Nos. 1716 to 1719/Mds/2010 for the assessment years 1999-2000 03-04 to 2005-06. 6. On the other hand, the ld. DR fairly accepted that the issue is covered by the decision of the Coordinate Bench of the Tribunal in assessee s own case for earlier assessment years. 7. We have heard both sides, perused the materials on record and gone through the orders of authorities below. In the assessment order, the Assessing Officer has observed that the assessee in its profit and loss account claimed royalty paid at .97,98,679/- being royalty payment made to M/s. Nippon Piston Rings Ltd. for receiving technical assistance relating to manufacture of the products. The royalty is paid at a fixed percentage on the net sales, based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the facts and circumstances, we find no reason to interfere with the order passed by the ld. CIT(Appeals). Thus, the issue raised by the Revenue and the appeal filed by the assessee are dismissed. I.T.A. No. 1328/Mds/2014 9. In so far as grounds raised by the Revenue with regard to additional depreciation is concerned, in the assessment order, the Assessing Officer has observed that during the period under consideration, the assessee company has claimed additional depreciation amounting to .20,62,530/- in respect of plant and machinery acquired and put to use during the last financial year 2006-07. The Assessing Officer called for explanation from the assessee as to how the additional depreciation can be allowed. After receivi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. We have heard both sides, perused the materials on record and gone through the orders of authorities below. The only issue for our consideration is when the assessee has used plant and machinery less than 180 days whether it will be eligible to carry forward the remaining balance of additional depreciation to next year or not. Section 32(1)(iia) of the Act provides for additional depreciation @ 20% in the case of new machinery and plant acquired by the assessee. Again proviso to section 32(1) provides that if the asset is put to use for less than 180 days in the previous year, the deduction shall be restricted to 50% of the prescribed rates. It is very clear from the plain reading of section 32(1)(iia) of the Act that the additional de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to section 32(1) of the Act, that very clause (iia) itself was inserted by Finance Act, 2002 with effect from 01.04.2003. Therefore, it was imperative that on and after 01.04.2003, the claim of the assessee made under section 32(1)(iia) of the Act, had to be necessarily assessed by applying the second proviso to section 32(1) of the Act. Therefore, when there was statutory stipulation providing for restriction to 50 per cent of the amount allowable under section 32(1)(iia) of the Act, no fault can be found with the conclusion of the Assessing Authority as well as that of the Appellate Authority and the Tribunal in having affirmed the action of the Assessing Authority. We, therefore, do not find any scope to entertain the said question of l ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
