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2016 (12) TMI 1830 - AT - Income TaxCarry forward of additional depreciation - Additional depreciation of 10% on plant and machinery as purchased and put to use in the previous year u/s 32(1)(iia) - HELD THAT:- In so far as claim of carry forward of additional depreciation to the extent it could not be allowed in earlier year due to use lesser than 180 days, no doubt there are decisions of Co-ordinate Bench which are for and against the assessee. In our opinion the issue is no more res integra due to the judgment in the case of Rittal India Pvt. Ltd [2016 (1) TMI 81 - KARNATAKA HIGH COURT]. 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. Tribunal, in our view, has rightly held, that additional depreciation allowed under section 32(1)(iia) of the Act is a one-time benefit to encourage industrialisation, and the provisions related to it have to be construed reasonably, liberally and purposively, to make the provision meaningful while granting the additional allowance. - Decided against revenue.
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