Assessee engaged in manufacturing of ball bearing and rubber products acquired and installed certain plant and machinery. Assessee claimed depreciation at rate of 50 per cent of allowable additional depreciation i.e. at rate of 10 per cent instead of 20 per cent of actual cost. Assessing Officer disallowed the additional depreciation on the ground that machinery was installed in earlier year. CIT(A) allowed the additional depreciation. On appeal the Tribunal held that very objective of insertion of a new proviso to section 32(1) is to remove discrimination and therefore it could be safely said that same is just a curative amendment and even under section 32(1) there is no provision prohibiting balance additional depreciation in succeeding year. (AY. 2015-15)
DCIT v. National Engineering Industrial Ltd. (2022) 193 ITD 420 (Kol.)(Trib.)
S. 32 : Depreciation-Additional depreciation-Put to use in earlier year-20 per cent of actual cost of plant or machinery-Put to use less than 180 days-50 percent of additional depreciation allowable. [S. 32(1)(iia)]