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2021 (4) TMI 1334 - AT - Income TaxAdditional depreciation on the machinery which was installed during the year but purchased before 1.4.2005 - HELD THAT:- We notice that similar issue was considered by the coordinate bench in the case of Euro Pratik Ispat Private Limited [2014 (4) TMI 397 - ITAT MUMBAI] Assessee had claimed AD @10%,as the P &M had worked for a period less than one year. It is a common phenomenon that in big projects, installation of machinery takes very long time because of the sheer volume of the work to be carried out. If an assessee is not successful in installing P&M in one year and carries forward the installation work in subsequent year/years it cannot be denied any benefit on the ground that it had acquired the P &M in earlier year. The intent of the legislature was to attract investment, so in our opinion the section can be termed as benevolent provision. In the case under consideration production started from 01.01.2006. Before that fabrication and completion of P&M was going on. Treatment given by the assessee in the books of accounts to the P&M was in accordance with the Accounting Standards (AS)and the AO/FAA has not denied the fact that the assessee was following AS. Therefore, in our opinion, assessee was entitled to claim AD @of 10%. Reversing the order of the FAA, we decide the effective ground of appeal in favour of the assessee. Similar view was also expressed by the Hon’ble Gujarat High Court in the case of IDMC Ltd [2017 (2) TMI 644 - GUJARAT HIGH COURT].Therefore, respectively following the above decisions which are applicable mutatis mutandis to the present case, we are inclined to accept the submission of Ld. AR. Accordingly grounds raised by the assessee are allowed.
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