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2014 (6) TMI 560 - AT - Income TaxDisallowance of additional deprecation on installation of embroidery machines – Held that:-Following DCIT vs. Cosmo Films Ltd. [2012 (9) TMI 281 - ITAT DELHI] - the additional depreciation cannot be restricted to 50 % and it has to be allowed in succeeding years if it is not allowed full in the relevant year – the assessee had earned the benefit as soon as he had purchased the new plant and machinery in full but it is restricted to 50% in that particular year on account of period of usages - Such restrictions cannot divest the statutory right - Law does not prohibit that balance 50% will not be allowed in succeeding year - The extra depreciation allowable u/s 32(1)(iia) in an extra incentive which has been earned and calculated in the year of acquisition but restricted for that year to 50% on account of usage - The so earned incentive must be made available in the subsequent year - overall deduction of depreciation u/s 32 shall definitely not exceed the total cost of plant machinery – thus, the order of the CIT(A) in respect of deletion of disallowance on account of additional depreciation is upheld – Decided against Revenue.
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