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TMI Blog2017 (2) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... discussion, we hold that the assessee is eligible for additional depreciation on vaporizers u/s. 32(1) (iia) of the Act. - Decided in favour of assessee - I.T.A. No. 1109/Mum/2013 - - - Dated:- 15-2-2017 - SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMER For The Appellant : Shri Niraj Sheth (AR) For The Respondent : Shri M.C. Omi Ningshen (DR) ORDER PER ASHWANI TANEJA, AM: This appeal has been filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals)-4, Mumbai (hereinafter called as Ld. CIT (A) in short) dated 23.11.2012 and passed against the order of the Assessing Officer (AO) u/s 143 (3) r.w.s. 147 of the Income Tax Act, 1961 dated 15.11.2011 for AY 2006-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2:3 The Appellant submits that the Assessing Officer be directed to grant additional depreciation on the vaporizers as claimed by it and to re-compute its total income accordingly. 2. During the course of hearing, it was submitted by the Ld. Counsel of the assessee that the issue on merits with regard to allowability of additional depreciation is covered by the order of the Tribunal in group company of the assessee namely Abbott India Ltd. vs. ACIT (ITA No. 8428/Mum/2011) dated 30.10.2015 and if this issue is decided in favour of the assesse then ground of the assessee with regard to reopening may be treated as infructuous at this stage. Therefore, we find it appropriate to first take up the ground with regard to merits i.e. groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgements relied upon by the Ld. AR before we start with our observation, Section 32 (1) (iia), as it stood at the relevant assessment year, is under: Depreciation 32(1) In respect of depreciating of- (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 assesse engaged in the business of manufacturer or production of any article or thing or in the business of generation or generation and distribution of power, a further sum equal to twenty per cent of the actual cost of such machinery or plant shall be allowed as deduction under cause (ii): Provided that no deduction shall be allowed in respect of- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that this clause was inserted to provide an incentive for fresh investment in industrial sector. 8. It observed that this provision has been directed towards encouraging industrialization by allowing additional benefit to the tax payers setting up new industrial undertakings/making more investment in capital goods. Thus, these are incentives aimed to boost new investments in setting up and expanding the units. 9. In the facts of the present case that assesse has installed vaporizers amounting to ₹ 35,58,040/- at its hospitals. The Revenue has not disputed the fact that, the assesse is not engaged in manufacturing activities, carried on at Goa plant. The assesse provides health care solutions through its fair marketing arm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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