Additional depreciation allowable only on acquisition & installation of new machinery

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ITAT DELHI BENCH ‘C’

International Cars & Motors Ltd.

v.

Income-tax Officer, Ward-11(4), New Delhi

IT APPEAL NO. 860 (DELHI) OF 2012

[ASSESSMENT YEAR 2006-07]

DECEMBER 21, 2012

 

During the assessment year 2006-07 in question in the provisions laid down u/s 32(i)(iia) there was specific condition alongwith installation of new plant or machinery after 31st March, 2005 that the new plant or machinery must also be acquired after 31st March, 2005. We have also reproduced herein above the relevant provisions laid down u/s 32(i)(iia) of the Act in operation during the assessment year under consideration. Under these circumstances we hold that the decision of Hon’ble Calcutta High Court in the case of Surama Tubes (P) Ltd.(supra) relied upon by the Ld. AR is not helpful to the assessee. During the year for claiming additional depreciation u/s 32(i)(iia) of the Act, as discussed above, both the conditions that new machinery or plant has been acquired and installed after 31.3.2005 were required to be fulfilled . Since undisputedly the new machinery or plant in question were not acquired after 31st day of March, 2005, the authorities below were justified in denying the claimed additional depreciation under the said provisions on that basis.