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2016 (4) TMI 40 - AT - Income TaxAdditional depreciation u/s 32(1)(iia) on plant and machinery - whether to claim additional depreciation, the assessee’s main business must be manufacture or can be it an activity of the main business i.e. ancillary activity? - Held that:- It is clear that the manufacturing activity of the assessee is a separate economical activity and incidental to the main business. Since, the assessee was already running a manufacturing activity independently and manufacturing pipes as it is observed in the above judgment, that one business can be advantageously combined with another business. Hence, in the present case, as per the provisions of section 32(11)(iia) and relying on the decision of Hon’ble Madras High Court in the case of Hi Tech Arai Ltd. (2009 (9) TMI 60 - MADRAS HIGH COURT ), the assessee is already engaged in the business of manufacture even though it is an activity of the main business. In our considered view, the assessee is eligible to claim additional depreciation u/s 32(1)(iia) of the Act as an existing manufacturer. - Decided in favour of assessee.
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