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2018 (2) TMI 1879 - AT - Income TaxDisallowance of Additional Depreciation u/s 32(1)(iia) - use less than 180 days - entitled for balance 50% of additional depreciation in the subsequent assessment year - new machinery and plant which has been acquired and installed in the first year of installation - AO disallowed 50% of additional depreciation as claimed by the assessee during the current assessment year on the plant and machinery which was installed in the preceding assessment year and was put to use after 30th September whereby it has been used for less than 180 days - CIT-A held that the assessee is entitled for 50% additional depreciation in the subsequent assessment year which was not allowed in the preceding assessment year due to the assessee company used the assets for less than 180 days - HELD THAT:- Referring to cases of SHRI T.P. TEXTILES PRIVATE LIMITED [2017 (3) TMI 739 - MADRAS HIGH COURT] AND M/S RITTAL INDIA PVT. LTD. (NO. 1) [2016 (1) TMI 81 - KARNATAKA HIGH COURT] and also considering the amendment brought in by way of proviso to section 32(1) wherein it has been specifically stated that 50% of additional depreciation which was not allowed in the preceding assessment year shall be allowed in the subsequent assessment year, concluded that the assessee is entitled for additional 50% depreciation in the assessment year which follows the assessment year in which the machinery had been bought and put to use for less than 180 days. We also found that the Coordinate Bench in the case of Rashtriya Chemicals and Fertilizers Ltd. [2016 (8) TMI 366 - ITAT MUMBAI] has taken similar view following the decision of the the Hon'ble Karnataka High Court in the case of CIT vs. Rittal India (P) Ltd. (supra). Respectfully following the said decisions we uphold the order of the learned CIT(A) and reject the grounds raised by the Revenue.
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