TaxTMI 
TaxTMI 
2016 (11) TMI 1299
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....rned CIT(Appeals) erred in upholding the disallowance of additional depreciation u/s 32(l)(iia) of the Act amounting to Rs. 51,23,970/- in relation to plant and machinery purchased & installed amounting to Rs. 5,12,39,700 (approx.) in financial year 2010-11 relevant to assessment year 2011-12 on which additional depreciation was claimed only @ 10%, during the year of installation and balance 10% was claimed during the assessment year under appeal, following the judgment of Hon. Supreme Court and IT AT. iii. The learned CIT(Appeals) erred in not following the judicial precedents of various Benches of Tribunal. iv. That the appellant craves leave to add, amend or alter any of the grounds of the appeal. 2. From the above grounds, it is n....
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....10% of the actual cost of the machinery. Now remaining 50% additional depreciation claimed in the assessment year 2012-13. Calculation of same is as under:- Particulars Amount Additional Depreciation Plant & Machinery purchased during the Assessment year 2011-12 for less than 180 days 5,12,39,704.95 5,12,39,704.95*20%* 1/2= 51,23,970.49 Total 51,23,970.49 Section 32(1)(iia) of the Act provide the additional depreciation of @20% on new Plant & machinery purchased during the year but new plant & machinery put to use for less than 180 days than deduction under this section in respect of such assets shall be restricted to 50% of the amount calculated at the 20%. This restriction is only on the basis of period use. There is ....
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.... to use for 180 days or more in the matter of allowing additional depreciation. It was explained unequivocally that under the preamended provision of section 32, new plant & machinery which were put to use for less than 180 days during the previous year were not entitled for 100% of additional depreciation. To discourage the assessees from deferring the decision for investment in plant & machinery to the next PY for availing 100% additional depreciation, it has been provided that with effect from 01.04.2016 i.e AY 2016-17, the new plant & machinery which have been put to use for less than 180 days shall be eligible for 50% additional depreciation in the year of acquisition and installation and balance 50% additional depreciation in the succ....
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....8 SOT 307. 5. It was further submitted that the legislature made the amendment in the Act vide Finance Act, 2015 and inserted a proviso to Section 32(1)(iia) w.e.f. 01.04.2016. The proviso, inter alia, provides that balance 50% of the additional depreciation on new allotted machinery acquired or used for less than 180 days, which has not been allowed in the year of acquisition and installation of such plant and machinery shall be allowed in the immediately succeeding previous year. It was contended that the said amendment is clarificatory in nature so the intention of the legislation was very much clear therefore, the assessee was eligible to claim the deduction of the depreciation in the succeeding year because the machinery was used for ....
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....sioner of Income Tax and Another Vs. Rittal India Pvt. Ltd., (2016) 380 ITR 423, wherein it has been held as under: "........that the beneficial legislation should be given liberal interpretation so as to benefit the assessee. The intention of the legislation is absolutely clear that the assessee shall be allowed certain additional benefit, which was restricted by the proviso to half being granted in assessment year, if certain condition was not fulfilled. But that would not restrain the assessee from claiming the balance of the benefit in the subsequent assessment year. The Tribunal had rightly held that additional depreciation allowed under Section 32(1)(iia) is a one-time benefit to encourage industrialization and the provisions related....