TMI Blog2016 (12) TMI 1830X X X X Extracts X X X X X X X X Extracts X X X X ..... lation 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 considered view, would not restrain the assessee from claiming the balance of the benefit in the subsequent assessment year. Tribunal, in our view, has rightly held, that additional depreciation allowed under section 32(1)(iia) of the Act is a one-time benefit to encourage industrialisation, and the provisions related to it have to be construed reasonably, liberally and purposively, to make the provision meaningful while granting the additional allowance. - Decided against revenue. - I.T.A. Nos. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer holding that the Act did not permit carry forward of additional depreciation on new plant and machinery to the extent it could not be availed due to usage less than 180 day. 3. In its appeals before ld. Commissioner of Income Tax (Appeals), argument of the assessee was that Co-ordinate Benches of this Tribunal in the cases of M/s. Addison and Company vs. DCIT (ITA no.2198/Mds/2015, dated 4.3.2016), M/s. Hinduja Foundaries Ltd vs. ACIT (ITA No.1590, 1591, 1592 and 1593/Mds/2015, dated 19.02.2016) and M/s. Devi Polymers Pvt. Ltd vs. ACIT (ITA No.165/Mds/2014, dated 09.4.2014 allowed similar claim for carried forward additional depreciation. 4. Ld. Commissioner of Income Tax (Appeals) after considering the submissions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days, no doubt there are decisions of Co-ordinate Bench which are for and against the assessee. However, in our opinion the issue is no more res integra due to the judgment of Karnataka High Court in the case of Rittal India Pvt. Ltd(supra). Their lordship after considering Sec. 32(1)(iia) of the Act held at para 3 to 10 as under:- 3. The dispute in the present appeal is with regard to the allowance of the balance 10 per cent. depreciation in the next assessment year 2008-09, so that the benefit of the total 20 per cent. allowable depreciation under section 32(1)(iia) of the Act was given. The Assessing Officer, as well as the Appellate Commissioner, disallowed the claim of the assessee, whereas the Tribunal, vide its order dated Januar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets acquired on or after the 1st day of April, 1998, owned, wholly or partly, by the assessee and used for the purposes of the business or profession, the following deductions shall be allowed- (i) in the case of assets of an undertaking engaged in generation or generation and distribution of power, such percentage on the actual cost thereof to the assessee as may be prescribed ; (ii) in the case of any block of assets, such percentage on the written down value thereof as may be prescribed : . . Provided further that where an asset referred to in clause (i) or clause(ii) or clause (iia), as the case may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en done away by substituting clause (iia) with effect from April 1, 2006. The grant of additional depreciation, under the aforesaid provision, is for the benefit of the assessee and with the purpose of encouraging industrialisation, by either setting up a new industrial unit or by expanding the existing unit by purchase of new plant and machinery, and putting it to use for the purpose of business. The proviso to clause (ii) of the said section makes it clear that only 50 per cent. of the 20 per cent. would be allowable, if the new plant and machinery so acquired is put to use for less than 180 days in a financial year. However, it nowhere restricts that the balance 10 per cent. would not be allowed to be claimed by the assessee in the next ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal depreciation allowed under section 32(1)(iia) of the Act is a one-time benefit to encourage industrialisation, and the provisions related to it have to be construed reasonably, liberally and purposively, to make the provision meaningful while granting the additional allowance. We are in full agreement with such observations made by the Tribunal. We are of the opinion that as on date there is no judgment of any other High Courts which is in favour of the Department. Hence, we do not find any reason to disturb the view taken by the ld. Commissioner of Income Tax (Appeals). 8. In the result, appeals of the Revenue for both the assessment years are dismissed. Order pronounced on Wednesday, the 21st day of December, 2016, at Chenna ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
