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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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