9911796707
TMI Blog2020 (1) TMI 1701X X X X Extracts X X X X X X X X Extracts X X X X ..... ch to the issue - HELD THAT:- On perusal of the provision of Section 32(1) of the Act and proviso thereto read with Section 32(1)(iia) it is clear that the assessee can claim additional depreciation at the rate of 20% of the actual cost of the plant and machinery purchased during the financial year - Such allowance of the depreciation can be claimed only to the extent of 10%, if the plant and machinery purchased by the assessee is used for less than 182 days. Accordingly, the assessee has claimed the additional depreciation to the extent of 10% only for Assessment Year 2010- 11, and therefore, the claim of remaining 10% additional depreciation is made for the Assessment Year 2011 -12. Assessee can claim remaining additional depreciation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition of Rs.7,91,352/ on account of assessee's claim of additional depreciation? 3. Question No.2(A) is already considered by us in Tax Appeal No. 790 of 2019 by the order of even date and accordingly, the appeal stands dismissed so far as Question No.2(A) is concerned. 4. With regard to Question No.2(B), the facts in brief are that the assessee had acquired and installed new plant and machinery in Financial Year2009 10. Since the plant and machinery were used for less than 182 days, the claim of additional depreciation under Section 32(1)(iia) of the Act during assessment year 2010- 11 was restricted to 50%. During the assessment proceedings for the assessment year 2011 -12, the assessee made an additional claim before the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidering the findings given by the CIT(Appeals), dismissed the appeal filed by the Revenue. 6. In view of the above facts, it would be germane to refer relevant provisions of Section 32(1) of the Act which reads as under: 32. (1) In respect of depreciation of (i) buildings, machinery, plant or furniture, being tangible assets; (ii) know how, patents, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets acquired on or after the 1st day of April, 1998, owned, wholly or partly, by the assessee and used for the purposes of the business or profession, the following deductions shall be allowed (i) in the case of assets of an undertaking engaged in generation or generat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acquired by the assessee during the previous year and is put to use for the purposes of business for a period of less than one hundred and 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: Provided also that where an asset being commercial vehicle is acquired by the assessee on or after the 1st day of Octobe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining additional depreciation of 10% in the assessment year 2011 -12. The legislature has also thought it fit to clarify the situation by inserting third proviso to Section 32(1) by the Finance Act, 2015 with effect from 01.04.2016. According to third proviso to Section 32(1) of the Act, the assessee can claim the remaining additional depreciation in the subsequent assessment year. 9. Thus, both the authorities below have rightly held that the assessee is entitled to remaining additional depreciation of 10% in the assessment year 2011- 12 and there is no infirmity in the impugned orders passed by the CIT(Appeal) as well as the Tribunal. 10. In view of the foregoing reasons, no question of law much less any substantial questions of law aris ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
