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2022 (4) TMI 582 - AT - Income TaxDisallowance of warranty expenses - HELD THAT:- As decided in own case [2018 (3) TMI 525 - ITAT KOLKATA] treatment given by the assessee from year to year with regard to treatment of provision for non-moving inventory in the return of income, we hold that the Ld. CIT(A) had rightly deleted the disallowance made in this regard by the ld. AO. We, therefore, taking consistent view and respectfully following the decision of this Tribunal, find no reason to interfere in the finding of the ld. CIT(A) deleting the alleged disallowance of warranty expenses made by the AO . Disallowance of additional depreciation - As during the year assessee’s production has not increased as claimed by the assessee - HELD THAT:- For claiming the additional depreciation, the assessee has to prove that the new machines have been purchased, put to use and the capacity of production is increased. The actual production is not at all mandatory for claiming the additional depreciation. Provisions of Section 32(1)(iia) of the Act states that, in the case of any new machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2002, by an assessee engaged in the business of manufacture or production of any article or thing, a further sum equal to 15% of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii). Further, there are provisos to this Clause “ii”, but they are not relevant for the instant issue. So, the fact remains as per this proviso the assessee is only required to acquire and install the machines, which in this case has been rightly done so by the assessee and is duly supported by the certificate of the Chartered Engineer as well as of Chartered Accountant which proves that the assessee has purchased the machines and installed the same and this resulted in increase in installed capacity of production of the assessee and, therefore, assessee is eligible for claiming the additional depreciation. We, therefore, under the given facts and circumstances of the case, are of the considered view that the assessee has rightly claimed the additional depreciation - Decided in favour of assessee.
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