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TMI Blog2016 (12) TMI 1830X X X X Extracts X X X X X X X X Extracts X X X X ..... iation of 10% on plant and machinery which were purchased and put to use in the previous year relevant to the preceding assessment year relying on section 32(1)(iia) of the Income Tax Act, 1961 ( in short ''the Act''). Assessee had used such plant and machinery for a period less than 180 days in the preceding year and therefore it could claim only 50% of the additional depreciation. The, claim for additional depreciation in the preceding assessment year in respect of new plant and machinery purchased in that year was restricted to 10%. Balance 10% coming to C4,33,414/- was claimed by the assessee in the impugned assessment year as carried forward additional depreciation from the preceding assessment year. There was a similar claim made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer to allow the claim of the assessee. 5. Now before us, ld. Departmental Representative strongly assailing the order of the ld. Commissioner of Income Tax (Appeals) submitted that the wordings of Sec. 32(1)(iia) of the Act did not allow a claim of carry forward unabsorbed additional depreciation. 6. Per contra, ld. Authorised Representative once again relied on the very same decisions on which assessee had banked before ld. Commissioner of Income Tax (Appeals). Reliance was also placed on the judgment of Hon'ble Karnataka High Court in the case of CIT vs. Rittal India Pvt. Ltd 380 ITR 423. According to him, the decision of the ld. Commissioner of Income Tax (Appeals) was in accordance with law. 7. We have considered the rival content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t provide for such carryover, thereby violating the legal principles of 'casus omissus' which states that the courts cannot compensate for what the Legislature has omitted to enact ? (ii) Whether the Tribunal was correct in holding that additional depreciation allowed under section 32(1)(iia) is a one-time benefit to encourage industrialisation and the relevant provisions has been construed reasonably and purposive without appreciating that the additional depreciation is allowed in the year of purchase and if in the year of purchase the assessee is eligible only for 50 per cent. depreciation, the balance 50 per cent. cannot be carried forward for the subsequent year on the claim cannot be allowed in any other year ?" 6. The rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing or in the business of generation or generation and distribution of power, a further sum equal to twenty per cent. of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii)." 7. Clause (iia) of section 32(1) of the Act, as it now stands, was substituted by the Finance Act, 2005, applicable with effect from April 1, 2006. Prior to that, a proviso to the said clause was there, which provided for the benefit to be given only to a new industrial undertaking, or only where a new industrial undertaking begins to manufacture or produce during any year previous to the relevant assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y mean that the balance 10 per cent. additional deduction can be availed of in the subsequent assessment year, otherwise the very purpose of insertion of clause (iia) would be defeated because it provides for 20 per cent. deduction which shall be allowed. 10. It has been consistently held by this court, as well as the apex court, that the beneficial legislation, as in the present case, should be given liberal interpretation so as to benefit the assessee. In this case, the intention of the legislation is absolutely clear, that the assessee shall be allowed certain additional benefit, which was restricted by the proviso to only half of the same being granted in one assessment year, if certain condition was not fulfilled. But, that, in our c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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