Depreciation for power-generation assets set by prescribed rate; deduction limited where asset used for less than statutory minimum period. The amendment inserts a new clause in section 32(1) prescribing a specific percentage of actual cost as depreciation for assets of undertakings engaged in generation or generation and distribution of power. It also substitutes the proviso to provide that if such an asset (or an asset under clause (ii)) is acquired and used for business for less than the statutory minimum period in the previous year, the deduction under section 32(1) is restricted to fifty per cent of the amount computed at the prescribed percentage for that asset.
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.
Depreciation for power-generation assets set by prescribed rate; deduction limited where asset used for less than statutory minimum period.
The amendment inserts a new clause in section 32(1) prescribing a specific percentage of actual cost as depreciation for assets of undertakings engaged in generation or generation and distribution of power. It also substitutes the proviso to provide that if such an asset (or an asset under clause (ii)) is acquired and used for business for less than the statutory minimum period in the previous year, the deduction under section 32(1) is restricted to fifty per cent of the amount computed at the prescribed percentage for that asset.
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