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TMI Blog2018 (12) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... in the previous year, the depreciation was restricted to 50%. Such a situation as in the present case, was considered by the Division Bench of the Madras High Court in Commissioner of Income Tax v/s. Shri T. P. Textiles Pvt. Ltd. [2017 (3) TMI 739 - MADRAS HIGH COURT] the Court referred to the judgment of the Karnataka High Court in Rittal India Pvt. Ltd., [2016 (1) TMI 81 - KARNATAKA HIGH COURT] as well as the addition of third proviso to clause (ii) of sub-section 1 of Section 32 Karnataka High Court in Rittal India Pvt., Ltd.,(supra) even without the aid of the statutory amendment held that remaining 50% unclaimed depreciation would be available to the Assessee in the succeeding Assessment Year. Now the legislation has amended the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO vide order dated 21.12.2009 computing total loss of ₹ 29,83,16,673/under the normal provision and total income under Section 115JB of the Act. Subsequently, Commissioner (Appeals) passed order under Section 263 of the Act, on 17.01.2012 on the issue of additional depreciation claimed, carry forward unabsorbed depreciation and provision of doubtful advances not added back while computing the Book Profit under Section 115JB and thus set aside the original assessment order. (ii) Subsequently, the AO issued notice to the assessee under section 142 (1) on 06.02.2012 pursuant to the order under section 263 of the Act. The AO vide order dated 04.12.2012 restricted the claim for additional depreciation to ₹ 3,21,29,304/as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the second proviso to clause (ii) of sub-section 1 of Section 32 of the Act, would restrict Assessee's claim of depreciation to 50% in case, the assets are acquired by the Assessee during the previous year and put to use for the purposes of business or profession for a period less than 180 days in the said previous year. 7. In the context of such statutory provisions, the Revenue has raised the question whether when 50% of the additional depreciation is claimed by the Assessee in a particular Assessment Year, since the acquisition and putting in to use of the assets in the previous Year was for less than 180 days, the Assessee can claim the remaining depreciation in the subsequent Assessment Year. Such a question came up for cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be granted is 20 per cent additional depreciation. By virtue of the proviso referred to above, only 10 per cent can be claimed in one year, if plant and machinery is put to use for less than 180 days in the said financial year. This would necessarily mean that the balance 10 per cent additional deduction can be availed of in the subsequent assessment year, otherwise the very purpose of insertion of clause (iia) would be defeated because it provides for 20 per cent deduction which shall be allowed. It has been consistently held by this Court, as well as the apex court, that the beneficial legislation, as in the present case, should be given liberal interpretation so as to benefit the assessee. In this case, the intention of the legisla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd eighty days in that previous year, and the deduction under this sub-section in respect of such asset is restricted to fifty per cent of the amount calculated at the percentage prescribed for an asset under clause (iia) for that previous year, then, the deduction for the balance fifty per cent of the amount calculated at the percentage prescribed for such asset under clause (iia) shall be allowed under this sub-section in the immediately succeeding previous year in respect of such asset. 8. The third proviso, thus, now recognizes the right of an Assessee to claim the remaining 50% depreciation in subsequent year in a case where machinery and plant being acquired and put to use for less than 180 days in the previous year, the deprecia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the additional depreciation on new plant or machinery acquired and used for less than 180 days which has not been allowed in the year of acquisition and installation of such plant or machinery, shall be allowed in the immediately succeeding previous year. This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 201617 and subsequent assessment years. 11.2: A perusal of the extract of the memorandum relied upon would show that the legislature recognized the fact that the manner in which the Revenue chose to interpret the provision, as it stood prior to its amendment would lead to discrimination, in respect of plant and machinery, which was used for less than 180 days, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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