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2016 (8) TMI 1401 - AT - Income TaxReopening of assessment u/s 147 & 148 - disallowing the additional depreciation u/s 32(1)(ii) - Held that:- Beneficial legislation, as in the present case, should be given liberal interpretation so as to benefit the assessee. In this case, the intention of the legislation is absolutely clear, that the assessee shall be allowed certain additional benefit, which was restricted by the proviso to only half of the same being granted in one assessment year, if certain condition was not fulfilled. But, that, in our considered view, would not restrain the assessee from claiming the balance of the benefit in the subsequent assessment year. The Tribunal, in our view, has righly held, that additional depreciation allowed under Section 32(1)(iia) of the Act is a one time benefit to encourage industrialization, and provisions related to it have to be construed reasonably, liberally and purposively, to make the provision meaningful while granting additional allowance. See THE COMMISSIONER OF INCOME-TAX, LTU, THE ASST. COMMISSIONER OF INCOME-TAX (LTU) VERSUS M/S RITTAL INDIA PVT. LTD. (NO. 1) [2016 (1) TMI 81 - KARNATAKA HIGH COURT] We hereby hold that the assessee is entitled to claim the remaining 10% of the additional depreciation of ₹ 2,04,84,781/- for the relevant assessment year 2008-09 in the case of the assessee. It is ordered accordingly. Since we have decided the issue on merits, we do not find it necessary to adjudicate the issue with respect to reopening of assessment since it would be only academic. - Decided in favour of assessee
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