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2016 (5) TMI 541 - AT - Income TaxDisallowance of additional depreciation on plant and machinery - Held that:- The assessee has acquired the plant and machineries before 31.03.2005 but the machineries were installed after 31.03.2005. If the revenue authorities’ view is accepted then the assessee cannot claim additional depreciation as per earlier provision since the machineries were neither acquired nor installed after 31.03.2002. At the same time, the assessee cannot claim the additional depreciation under the new provisions as machineries were acquired before 31.03.2005 but installed after 31.03.2005. Such interpretation would lead to a precarious situation and put the assessee in a vulnerable situation wherein even after making investments in new plant and machineries, the assessee is deprived of additional depreciation. The eligibility for the claim of depreciation should be considered from the date of the installation of the plant and machineries, and the word “acquired” has to be considered in the light of “ownership” of the asset. There remains no doubt that the assessee is very much entitled for the claim of additional depreciation. - Decided in favour of assessee.
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