TMI Blog2022 (8) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... - In this case, the assessee has claimed additional depreciation as per provisions of section 32(1)(iia) of the Act, on capitalized value of forex loss incurred on acquisition of plant machinery during earlier financial years by taking clue from provisions of section 43A of the Act. In our considered view, arguments of the assessee is misplaced, because as per provisions of section 32(1)(iia) the assessee is entitled for additional depreciation only in the year of acquisition and installation of new plant machinery, but not for subsequent financial years. Although, provisions of section 43A of the Act allows capitalization of forex loss incurred on acquisition of plant machinery outside India to cost of assets, but said additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignoring the alternative claim of the appellant for adding the subject forex loss to the block of assets for the purpose of claiming tax depreciation. 3. Brief facts of the case are that the assessee company is engaged in the manufacture of automobile components filed its return of income for the assessment year 2010-11 on 06.10.2010 admitting total income of Rs. Nil. During financial year relevant to assessment year 2010-11, the assessee company claimed additional depreciation @ 20% u/s.32(1)(iia) of the Act, in respect of new plant and machinery purchased and put to use. As per facts brought on record by the Assessing Officer, the assessee claims to have purchased new plant and machinery amounting to Rs,15,14,14,515/-, which includes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im additional depreciation on plant machinery acquired and installed, if certain conditions are satisfied. In this case, the assessee has satisfied conditions prescribed u/s.32(1)(iia) of the Act, and claimed depreciation @ 20%on new plant machinery acquired and installed during the previous year. The Assessing Officer as well as the learned CIT(A) without appreciating facts has rejected claim of the assessee. 5. The learned D.R., on the other hand, supporting order of the learned CIT(A) submitted that as per provisions of section 32(1)(iia) of the Act, an assesseee can claim additional depreciation in case any new plant machinery was purchased and installed. In this case, the assessee has claimed additional depreciation on forex lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per provisions of section 43A of the Act, and once loss incurred by the assessee goes to increase W.D.V of new plant machinery, then, the assessee is entitled for additional depreciation as per provisions of section 32(1)(iia) of the Act. 7. We have gone through reasons given by the Assessing Officer to reject additional depreciation on capitalization of forex loss in light of provisions of section 32(1)(iia) of the Act, and we ourselves do not subscribe to the arguments advanced by the learned counsel for the assessee for simple reason that as per plain reading of section 32(1)(iia) of the Act, additional depreciation is allowed to an assessee, in case, any new plant machinery which has been acquired and installed after 31st day of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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