Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 639 - AT - Income TaxClaim of additional depreciation - Machines were acquired during the previous financial year but put to use during the current financial year - Held that:- The facts brought on record shows that the plant and machinery does not a new plant and machinery acquired in the assessment year under consideration. The first requirement for claiming additional depreciation is that it should be a new plant and machinery. The machinery was new only when it is first put to use. When it is already installed in earlier assessment year, it was no more new machinery or plant. Once it was not a new machinery or plant, the additional depreciation u/s.32(1)(iia) cannot be allowed. The additional depreciation itself is only for a new machinery or plant. The intention of the legislature was to give such additional depreciation in the year in which assets were put to use and not for any succeeding assessment year. There is nothing in the statute, which allows such claim of additional depreciation in succeeding year on machinery, though it was acquired in earlier year. That cannot be any presumption that unless a claim is specifically denied, it has to be allowed. In our opinion, each assessment year is separate and independent assessment year. The provisions of the section 32 of the Act do not provide for postponement or carry forward of the residual additional depreciation, if any, in subsequent assessment years. Further, it is to be noted that when an allowance, which is ordinarily not available under normal commercial principles of accounting, is made specifically allowable, through enactment for certain specific provisions of the Act, it is also a requirement that there should be similar specific provisions, which shows its applicability every year, unless the context strongly calls for such an interpretation. Being so, we are not in agreement with the order of the Ld.CIT(A) in granting additional depreciation, though the plant and machinery was not new in the assessment year under consideration. Thus in the present case, this plant and machinery already capitalized in the earlier assessment years and also appeared in the block of assets. In our opinion, the assessee is not entitled to additional depreciation u/s.32(1)(iia) of the Act on the machineries acquired not in the Financial year 2010-11 relevant to the assessment year 2011-12. - Decided against assessee
|