TaxTMI 
TaxTMI 
2026 (3) TMI 1284
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....he assessment year 2007- 08 under Section 143(3) of the Income Tax Act. 2. The short points involved in this appeal is whether the assessee is entitled to claim the balance 50% of the additional depreciation for new plant and machinery purchased on a particular assessment year for less than of 180 days. The assessee / appellant filed its return of income on 30.10.2007, declaring a total income of Rs. 25,27,34,640/-. The return was processed under Section 143(1) of Income Tax Act. Subsequently, on scrutiny, it was found that the assessee has claimed additional depreciation of balance 50% to the ensuing assessment year and therefore, disallowed the excess claim of additional depreciation amounting to Rs. 3,15,48,837/- in respect of plant a....
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....0 per cent? 3.Whether on the facts and in the circumstances of the case and in law the Tribunal ought to have appreciated that second proviso to Section 32(1) only restricts the quantum of depreciation allowable in the first year of use but in no way restricts or reduces the total amount of additional depreciation, allowable in respect of eligible plant and machinery?." 5. The learned counsel appearing for the appellant submitted that the substantial questions of law, namely, whether the assessee is entitled to the balance 50% of the additional depreciation in the current assessment year in respect of an asset acquired in the previous year and put to use for less than 180 days, is no more res integra in view of the categorical p....
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....ed: 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 purpose 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) 1 or clause (iia), as the case may be: Provided also & Explanation 1 to Explanation 5** (iia) in the case of any new machinery or plant (other than ships and aircraft), w....
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....to Section 32, clearly indicate that the Legislature recognized the fact that the manner in which the provision was interpreted prior to the amendment would lead to discrimination in respect to plant and machinery used for less than 180 days and that used for 180 days or more. Thus, the Division Bench opined that in order to maintain parity among assessee's, they carry forward the benefit to the next assessment year for the balance 50% of the additional depreciation. 10. Since we are in full concurrence with the view expressed by the learned Division Bench, therefore, the questions of law as to whether the assessee is entitled to the balance 50% of the additional depreciation in the current year, in respect of asset acquired in the previ....