Assessee acquired plant and machinery in the second half of FY 2007-08 and the asset was put to use for less than 180 days in that year. Additional depreciation at 10% was allowed in AY 2008-09 under section 32(1)(iia) of the Act and the balance additional depreciation at 10% was allowed in the subsequent year i.e. AY 2009-10. The High Court relied on the decision of DCIT v. Brakes India Ltd (IT Appeal No. 1069 (Mds) of 2010 dt. 6-1-2012) which has been approved by the Supreme Court. (TCNo. 267 of 2020 dt. 07-09-2020) (AY.2009-10)
CIT v. Aztec Auto (P.) Ltd (2020) 119 taxmann.com 215 /(2021) 277 Taxman 273 (Mad.)(HC)
S. 32 : Depreciation – Asset put to use for less than 180 days – additional depreciation of 10% allowed in the year and balance 10% would be allowed in the subsequent year [S. 32(1)(iia)]