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2018 (12) TMI 64 - HC - Income TaxEntitlement to 50% of the additional depreciation under Section 32(1) (iia) - whether when 50% of the additional depreciation is claimed by the Assessee in a particular Assessment Year, since the acquisition and putting in to use of the assets in the previous Year was for less than 180 days, the Assessee can claim the remaining depreciation in the subsequent Assessment Year? - Tribunal allowed claim - Held that:- The third proviso, now recognizes the right of an Assessee to claim the remaining 50% depreciation in subsequent year in a case where machinery and plant being acquired and put to use for less than 180 days in the previous year, the depreciation was restricted to 50%. Such a situation as in the present case, was considered by the Division Bench of the Madras High Court in Commissioner of Income Tax v/s. Shri T. P. Textiles Pvt. Ltd. [2017 (3) TMI 739 - MADRAS HIGH COURT] the Court referred to the judgment of the Karnataka High Court in Rittal India Pvt. Ltd., [2016 (1) TMI 81 - KARNATAKA HIGH COURT] as well as the addition of third proviso to clause (ii) of sub-section 1 of Section 32 Karnataka High Court in Rittal India Pvt., Ltd.,(supra) even without the aid of the statutory amendment held that remaining 50% unclaimed depreciation would be available to the Assessee in the succeeding Assessment Year. Now the legislation has amended the provision by adding a proviso which, specifically recognizes the said right. The Madras High Court in Shri T. P. Textiles Pvt. Ltd., (supra) ruled that such proviso being clarificatory in nature, would apply to pending cases, covering past period also. No reason to take view different from two High Courts, examining the situation at considerable length. In the result, no question of law arises. - Decided against revenue
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