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2018 (3) TMI 1082 - ITAT MUMBAIDisallowance of additional depreciation u/s 32(1)(iia) - assessee has started production in the succeeding year, but assets were purchased in the previous year and the assessee was not engaged in the business of manufacturing profits when new machinery and plant were acquired - Held that:- The assessee is entitled to additional depreciation in case of new machinery or plant which are acquired and installed after 31.03.2005 by the assessee engaged in the business of manufacture or production of any article or thing. In the present case, the assessee has acquired the plant and machinery in the year prior to the previous year relevant to current assessment year. In that year, the said plant and machinery was under capital work-in-progress. The plant has started from 01.07.2011 and all the capital assets purchased by 31.3.2011 and shown as capital work-in-progress were transferred to respective assets on 31.03.2012. CIT (Appeals) has himself given a clear finding that the plant and machinery purchased in the financial year 2010-11 which is subsequent to the date specified for the allowance of the additional depreciation in the Act, i.e., 31.03.2005. We do not find any reason why the assessee should be denied additional depreciation. It is clear that the machineries in dispute were acquired after the date specified in the Act and their use was commenced from the current assessment year. Hence, the claim of additional depreciation is fully justified. - Decided in favour of assessee
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