2014 (2) TMI 1363

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....on" amounting to Rs. 5,55,899/- claimed by the appellant on addition of rolls under the head "plant & Machinery." 3 After hearing both the parties we find that during assessment proceedings the Assessing officer noticed that the assessee has claimed depreciation @ 80% on the 'Rolls" On enquiry it was claimed that depreciation was claimed as per provisions of section 32(1)(iia) and since rolls are also a part of machinery therefore additional depreciation was allowable. The Assessing officer did not find force in the submissions because he noted that for allowing additional depreciation u/s 32(1)(iia) the additional depreciation can be claimed if the machinery has been acquired and installed. Since the assessee was already running steel mi....

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....led to additional depreciation. Therefore, the claim of the appellant is rejected and this ground of appeal is dismissed. As regards the case laws cited, those are distinguishable on fact. The decision in the case of Aruna Ali (supra) is on the issue of development rebate and also in relation to a different set of machine. " 5 Before us. the Ld. Counsel for the assessee referred to provisions of section 32(1)(iia). He also referred to circular No. 8 of 2008 (copy of which is placed at page 18 of the paper book) which clearly points out that the condition of allowing additional depreciation only to new industrial undertaking has been dispensed with. It was also contended that the rolls are part of the machinery, therefore depreciation may ....

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....epreciation has to be allowed. Further para 3.6 of the circular reads as under: "3.6 Enhancement of the rate of additional depreciation on new machinery and plant and withdrawal of certain conditions. Under the existing provisions of clause (iia) of sub-section (1) of section 32, additional depreciation is allowed at the rate of fifteen per cent. of the actual cost of the new machinery and plant (other than ships and aircraft) acquired and installed after the 31st day of March, 2002. Additional depreciation is allowed in the case of a new industrial undertaking during any previous year in which it begins to manufacture or produce any article or thing on or after the 1st day of April, 2002 or to any industrial undertaking existing befo....