Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 314 - AT - Income TaxAdditional depreciation u/s 32(1)(iia) on plant and machinery - disallowance of claim as it had not been claimed as per explanation 5 to section 32(1) - Held that:- As relying on ase of Goetze (India) Ltd. vs. CIT [2006 (3) TMI 75 - SUPREME Court] wherein held as regards the explanation 5 to section 32(1) which speaks of allowing depreciation u/s 32 whether or not the assessee has claimed deduction in respect of depreciation in computing total income. In the said explanation which was inserted by the Finance Act, 2001 w.e.f. 1.4.2002, has in fact, been inserted after the sub-section (ii) of section 32(1). But at the same time, in our view, the same is applicable for section 32(1)(iia), since normal depreciation and additional depreciation are part of depreciation u/s 32(1) especially of section 32(1)(i), which includes the machinery for allowing depreciation. Therefore, on this account, a legal claim of additional depreciation has to be allowed by the Income Tax Authorities and accordingly, we direct the AO to allow the additional depreciation as per law, so claimed by the assessee. Decided in favour of assessee.
|