2016 (8) TMI 366

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....ity of order passed u/s 263. 3. The solitary issue raised in this appeal is whether the assessee was entitled or benefit of additional depreciation in the impugned order @30% u/s 32(1)(iia). The Assessing Officer had allowed the depreciation vide order u/s 143(3) dt 23-01-2013. In the order passed u/s 263, the ld.CIT observed that the additional depreciation was claimed and allowed on new plant & machinery which were acquired and put to use in the year relevant to assessment year 21009-10. Therefore, no depreciation can be allowed in the subsequent year i.e. impugned assessment year, i.e. A.Y. 2010-11 since no new plant & machinery has been acquired during the year under consideration. The assessee submitted that the new plant & machinery ....

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....ntra, the ld.DR relied upon the decision of the Tribunal in the case of CRI Pumps Pvt Ltd vs ACIT 58 sot 154 (Chen). 5. We have gone through the orders of lower authorities and considered the submissions made by both the sides. In our view, this issue has been decided by the Hon'ble Karnataka High Court in the case of CIT vs Rittal India Pvt Ltd (supra) with the following observations: 4. We have heard Sri K.V Aravind, learned counsel for the appellants as well as Sri T. Suryanarayana, learned counsel appearing for the respondent-assessee and perused the record. 5. This appeal has been filed raising the following two substantial question of law: 'i. Whether the Tribunal is correct in extending the benefit of Section 32(1 )(iia) of....

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....) in the case of any block of assets, such percentage on the written down value thereof as may be prescribed: Provided . .......... (a) . ............ (b) ............. Provided further that where an asset referred to in clause (i) or clause (ii) or 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 sub-section 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) I or clause (iia), as the case may be: Provided also .................

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....purpose of encouraging industrialization, 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% of the 20% 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% would not be allowed to be claimed by the assessee in the next assessment year. 9. The language used in Clause (iia) of the said Section clearly provides that "a further sum equal to 20% of the actual cost of such machinery or plant shall be allowed as deduction under Clause (ii....