9911796707
TMI Blog2011 (2) TMI 1459X X X X Extracts X X X X X X X X Extracts X X X X ..... ounds 2 to 2.3 of the assessee's appeal are against the action of the learned CIT(A) in holding that the assessee is not entitled to the additional depreciation on electrification. It was submitted by the learned authorised representative that the assessee is in the business of manufacture and sale of forgings. In the course of assessment the Assessing Officer had disallowed the claim of additional depreciation on the electrification on the ground that the electrification has nothing to do with the manufacture or production of any article or thing. It was the submission that the electrification was part of the plant and machinery and it was not a separate item. The learned authorised representative drew our attention to the annexures to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or production or the nature of the industry. If the electrical fittings are a requisite component of the plant and machinery or the factory where the actual manufacturing or processing of the article or thing is done, obviously, such electrification would be entitled to the additional depreciation as it would be treated as part of the plant and machinery. In the same manner if the electrical fittings or electrification is not connected with the actual manufacturing process insofar as it is in the office or in the sales depot etc., then as the same are not connected with the manufacturing or processing of the article or thing, it would not be entitled to the additional depreciation. Here in the present case as it is noticed that the electri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectio 32(1) was amended by Finance Act, 2002 with effect from 01-04-2003 by replacing the words 'where an asset referred to in clause (i) or clause (ii)' with the words 'where an asset referred to in clause (i) or clause (ii) or clause (iia)'. Once the Second Proviso, which restricts depreciation, is made specifically applicable to additional depreciation dealt with in clause (iia) through an amendment applicable for the period under consideration, the interpretation on applicability of a Proviso to a section or subsection advanced by the assessee company would make such an amendment redundant. Such an interpretation cannot, accordingly, be accepted. The Assessing Officer's action in restricting the additional depreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be restricted to fifty per cent of the amount calculated at the percentage prescribed for an asset under clause (i) or clause (ii) or clause (iia), as the case may be." 4.5 From the second proviso, it is clear that for availing the full benefit of additional claim of depreciation as per clause (iia), the newly installed machinery or plant / asset should be put to use for the purpose of business for not less than 180 days in the previous year. We do not find any substance or merit in the contention of the assessee that the second proviso is not applicable for the additional depreciation under clause (iia). When the proviso itself stipulates the assets referred to in clause (i) or clause (ii) or clause (iia), then there is no scope o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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