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TMI Blog2017 (2) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... es, facts and circumstances of the case. 2. The appellant denies himself liable to be assessed to a total income of Rs. 74,92,113/- as against the total income returned by the appellant of Rs. 68,08,950/- for the impugned assessment year 2009-10 on the facts and circumstances of the case. 3. The learned CIT(A) was not justified in confirming the disallowance of Rs. 6,83,163/- in respect of balance claim of additional depreciation under section 32(1)(iia) of the Act, claimed in the year subsequent to the year of installation of new machinery on the facts and circumstance of the case. 4. The learned CIT(A) was not justified in law in confirming the disallowance by the assessing officer, in respect of additional depreciation of 10% claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o file a paper book at the time of hearing the appeal. 10. In view of the above and other grounds that may be urged at the time of the hearing of appeal, the appellant prays that the appeal be allowed in the interest of justice and equity. 2. The only issue raised in the appeal of the revenue is regarding claim of additional depreciation under section 32(1)(iia) in the subsequent year of installation of the new machinery. 3. During the course of scrutiny assessment, the AO noted that the assessee has claimed additional depreciation of Rs. 6,83,163/- in respect of machinery which was installed during the financial year relevant to the earlier AY i.e., 2008-09. Accordingly, the AO has disallowed this claim of additional depreciation. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstalled this machinery during the financial year relevant to the assessment year 2008-09 and since the machinery was put to use for less than 180 days during the financial year 2009-08, the assessee claimed only 10% additional deduction on this account. For the year under consideration, the assessee has again claimed balance 10% additional depreciation on the said machinery which was disallowed by the AO as well as by CIT(A). 6. At the outset, we note that an identical issue fell for the consideration in Hon'ble jurisdictional High Court in the case of CIT(A) Vs. Rittal India Pvt. Ltd., (supra). The Hon'ble High Court, after analyzing the provisions of Section 32(1)(iia) of the Act, has held in paras 7 to 11 as under: 7. Section 10A was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of Section 10A, as amended, which could be suggestive of the fact that by the amendment made by Finance Act, 2000, Section 10A had changed its colour from being an exemption section to a provision providing for deduction. Yet, Section 10A continued to remain in Chapter III of the Act which Chapter deals with incomes which do not form part of the total income. There are several Circulars that have been placed before us by the contesting parties to explain the purpose and object of the amendment. Having looked at the aforesaid Circulars, issued from time to time, what we find is a fair amount of ambiguity therein as to the true nature and effect of the amendment. Specifically, we may refer to Circular No. 7 dated 16.07.2013 as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so been enacted by Parliament. There cannot, thus, be any doubt that it can be used in aid of the construction. It is, however, well settled that if the wordings of the statutory provision are clear and unambiguous, construction of the statute with the aid of "chapter heading" and "marginal note" may not arise. It may be that heading and marginal note, however, are of a very limited use in interpretation because of its necessarily brief and inaccurate nature. They are, however, not irrelevant. They certainly cannot be taken into consideration if they differ from the material they describe.' 10. The Revenue further contends that by virtue of the amendment made by Finance Act, 2000, deductions under Section 10A are required to be made a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tely on the expiry of the period of tax holiday i.e. 10 years. The provisions of Sections 32, 32A, 33, 35 and part of 36 do not separately apply to an eligible unit during the period of tax holiday. During the said period the deduction under the aforesaid sections of the Act are deemed to have been made. Similarly, under Section 10A(6)(ii) losses referred to in Section 72(1) or 74(1) and 74(3) are also eligible to be carried forward to the assessment year following the end of the holiday period commencing from the assessment year 2001-02. All these, according to the learned counsels for the assessees, suggest that, though heterogeneous elements exist in Section 10A, the provision is really an exemption provision. Alternatively, according to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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