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TMI Blog2020 (1) TMI 1701X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year 2011-2012. 2. The Revenue has proposed following substantial questions of law in its Memorandum of Appeal. "2(A) Whether the Appellate Tribunal has erred in the facts and circumstances of the case and in law, in upholding the order of the CIT(A) for deleting the addition of Rs.4,26,95,758/ in holding carbon receipts as capital receipt? "(B) Whether the Appellate Tribunal has erred in the facts and circumstances of the case and in law, in upholding the order of the CIT(A) for deleting the addition of Rs.7,91,352/ on account of assessee's claim of additional depreciation? 3. Question No.2(A) is already considered by us in Tax Appeal No. 790 of 2019 by the order of even date and accordingly, the appeal stand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sum equal to 20% of the actual cost of the machinery and plant shall be allowed as deduction. It is not in dispute that the assessee has acquired and installed the machinery after 31.03.2005. Therefore, CIT(Appeal), after considering the submissions and the facts of the case of the assessee, allowed additional depreciation of 10% for the assessment year 2011-12 adopting purposive approach to the issue. 5. The Revenue preferred the Tax Appeal before the Income Tax Appellate Tribunal "C" Bench, Ahmedabad and the Tribunal, after considering the findings given by the CIT(Appeals), dismissed the appeal filed by the Revenue. 6. In view of the above facts, it would be germane to refer relevant provisions of Section 32(1) of the Act which r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oviso to clause (iia), as the case may be, is acquired by the assessee during the previous year and is put to use for the purposes of business or profession for a period of less than one hundred and eighty days in that previous year, the deduction under this subsection in respect of such asset shall 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 : Provided also that where an asset referred to in clause (iia)or the first proviso to clause (iia), as the case may be, is acquired by the assessee during the previous year and is put to use for the purposes of business for a period of less than one hundred and eighty days ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee can claim additional depreciation at the rate of 20% of the actual cost of the plant and machinery purchased during the financial year. However, such allowance of the depreciation can be claimed only to the extent of 10%, if the plant and machinery purchased by the assessee is used for less than 182 days. Accordingly, the assessee has claimed the additional depreciation to the extent of 10% only for Assessment Year 2010-11, and therefore, the claim of remaining 10% additional depreciation is made for the Assessment Year 2011-12. 8. We are, therefore, of the opinion that the assessee can claim remaining additional depreciation of 10% in the assessment year 2011-12. The legislature has also thought it fit to clarify ..... X X X X Extracts X X X X X X X X Extracts X X X X
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