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2017 (4) TMI 1096 - AT - Income TaxAdditional depreciation not allowable in view of the provisions of Sec.32(1)(iia) - claim denied the reason that assessee apart from acquiring should have also installed the Plant and Machinery after 31.03.2015 but in the case of assessee since the Plant and Machinery was acquired before 31.03.2015 assessee - Held that:- Claim of additional depreciation was before the Hon’ble Gujarat High Court in the case of Pr.Commissioner of Income Tax Vs. M/s. IDMC Limited (2017 (2) TMI 644 - GUJARAT HIGH COURT) wherein held that the purpose and object of granting additional depreciation under Section 32(1)(iia) of the IT Act is stated hereinabove i.e. to encourage the industries by permitting the assessee setting up the new undertaking / installation of new plant and machinery and to give a boost to the manufacturing sector by allowing additional depreciation deduction. Thus, as rightly held by the learned ITAT the provision of section 32(1)(iia) of the IT Act is required to be interpreted reasonably and purposively as the strict and literal reading of section 32(1)(iia) of the IT Act will lead to an absurd result denying the additional depreciation to the assessee though admittedly the assessee has installed new plant and machinery. Under the circumstances, no error has been committed by the learned ITAT in allowing the additional depreciation at the rate of 20% on the plant and machinery installed by the assessee after 31st Day of March 2005 i.e. the year under consideration. No substantial question of law arise. - Decided in favour of the assessee
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