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2018 (8) TMI 1420 - HC - Income TaxAdditional depreciation @20% u/s 32(1)(iia) - vehicle used for the transport of Ready Mix Concrete (RMC) for use in their construction site, from their own manufacturing unit - Held that:- there is no question of the assessee claiming any deduction of a percentage of the entire profits and gains of the business. The income derived from the construction activity or the profits or gains is irrelevant in computing the depreciation available under Section 32(1)(iia). The assessee does not also have a claim that the construction activity leads to a production or manufacture. The specific claim is that, one of the ingredients used in the construction being RMC, is manufactured by the assessee at its unit, which article or thing is captively consumed and also sold to third parties. The dominant test has no application from the plain meaning of the words employed. Whatever be the business of the assessee, if the assessee is involved in a manufacture or production of articles or thing; then a claim under Section 32(1)(iia) would be permissible to the extent allowed as depreciation. We are of the opinion that though RMC does not have a shelf-life, the final mixture of stone, sand, cement and water in a semi-fluid state; transported to the construction site to be poured into the structure and allowed to set and harden into concrete is a thing or article manufactured. RMC is an article obtained as a result of manufacture. - Claim of additional depreciation allowed. - Decided in favor of assessee.
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