Initial depreciation for new machinery and plant in manufacture; claimable in first year with pro rata limit for short use. A person engaged in manufacture or production may claim initial depreciation for a new asset classified as Machinery and Plant if it was not previously used by another, is not installed in office or residential premises, is not an office appliance, and its full cost has not been otherwise deducted. The initial depreciation equals a specified portion of actual cost and is allowed in the first year the asset is used for business, subject to a pro rata restriction where the asset is used for less than the minimum period in that year.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Initial depreciation for new machinery and plant in manufacture; claimable in first year with pro rata limit for short use.
A person engaged in manufacture or production may claim initial depreciation for a new asset classified as Machinery and Plant if it was not previously used by another, is not installed in office or residential premises, is not an office appliance, and its full cost has not been otherwise deducted. The initial depreciation equals a specified portion of actual cost and is allowed in the first year the asset is used for business, subject to a pro rata restriction where the asset is used for less than the minimum period in that year.
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