Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 124 - AT - Income TaxDisallowance of additional depreciation u/s.32(1)(iia) claimed on new plant and machineries - Held that:- As decided in case of S.S.M. Bros. Pvt. Ld. & Others [1999 (1) TMI 2 - SUPREME Court] where the machinery or plant is installed for the purpose of the business of production of textiles, including those dyed, printed or otherwise processed, made wholly or mainly out of cotton, the assessee is entitled to the deduction of the development rebate the under. What is important is that this development rebate is available if the machinery or plant is installed for the purposes of the business of the production of textiles, including those 'otherwise processed.' If the machinery or plant is required to be utilized in the production of such textiles, at whatever sage, the assessee is entitled to the benefit of the development rebate. It is not disputed fairly that if the assessee had been producing the embroidered cloth starting from scratch, that is, by starting with cotton, this machinery would have been entitled to be considered for the purposes of such development rebate. We are of the view that it makes no difference that in the particular case, the assessee buys the cloth and then processes it, using the machinery, by embroidering it and, in some cases, by dyeing it. The assessee utilizes the machinery in the production of processed textiles. Therefore, the machinery is entitled to the development rebate under s.33(1)(b)(B)(i). The question has, therefore, to be answered in the affirmative and in favour of the assessee.'
|