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2015 (9) TMI 1632 - ITAT PUNERectification of mistake u/s 154 - additional depreciation u/s. 32(1)(iia) - whether mistake of incorrect claim is clearly apparent on plain reading of section 32(1)(iia) - Held that:- Additional depreciation is allowable to the assessee to the extent of 20% on the cost of plant & machinery and where the assessee has purchased an asset in the preceding year and has been allowed only 10% of the cost of asset as additional depreciation, the correct position of law is that balance 10% of additional depreciation is to be allowed to the assessee. Where the AO failed to apply the correct provisions of law, the assessment order passed by the Assessing Officer is amenable to rectification under section 154. We uphold the invoking of provisions of section 154 against the assessee. Further, in view of the concession made by the AR for the assessee, where the assessee was only entitled to 10% of the cost of machinery to be allowed as additional depreciation in the instant assessment year, since the balance 10% of cost of machinery has been allowed as additional depreciation in the preceding year, we reverse the order of CIT(A) and direct the Assessing Officer to allow depreciation @ 10% of the cost of machinery as additional depreciation on plant & machinery purchased by the assessee in the preceding year. - Decided in favour of assessee.
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