Additional Depreciation
This query is : Resolved
08 September 2010
Sir,
Whether additional depreciation u/s 32(1)(iia) is available for plant & machinery purchased by rice mills. Whether the activity undertaken by rice & flour mills are considered as manufacturing/ production for sec 32?
Whether additional depreciation u/s 32(1)(iia) is available for plant & machinery purchased by rice mills. Whether the activity undertaken by rice & flour mills are considered as manufacturing/ production for sec 32?
09 September 2010
The Additional Depreciation on new Machinery or plant is allowed u/s 32(iia) to an assessee which is an Industrial Undertaking i.e. it should be engaged in the business of manufacture or production of any article or thing.
The term Industrial Undertaking has been used in several sections of the IT Act, however the same has not ben defined in the Act. The tem has elarorately been explained i the judgemetn rendered by Delhi High cour in the case of Ansal HSG & Construction Co. Ltd. V. CIT.
It was held in that case that :
Therefore, we are of the opinion that common sense approach will have to be adopted and those undertakings would qualify as industrial undertakings .which are involved in „manufacturing activity .
In your case, by no strectch of imagination , can it be said that the activity carried by the rice mill is a manufacturing activity and hence, additional depreciation would not be allowed.
The term Industrial Undertaking has been used in several sections of the IT Act, however the same has not ben defined in the Act. The tem has elarorately been explained i the judgemetn rendered by Delhi High cour in the case of Ansal HSG & Construction Co. Ltd. V. CIT.
It was held in that case that :
Therefore, we are of the opinion that common sense approach will have to be adopted and those undertakings would qualify as industrial undertakings .which are involved in „manufacturing activity .
In your case, by no strectch of imagination , can it be said that the activity carried by the rice mill is a manufacturing activity and hence, additional depreciation would not be allowed.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Inventory of finished goods
- Applicability of Ind As to associate of associate
- Sale of property furniture sale
- Refund of AY 22-23
- Disallowance of Section 43B(h) to sez units
- Confusion around Form 26QB fields
- Filing of Form 10BB instead of Filing Form 10B
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Last year input claim shown in gstr9
- GST Registration Cancellation books of accounts asked by officer
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- As per our records, find the below outstanding demand(s)* and interest payable u/s 220(2):
- Regarding transaction th. credit card
- HSN Details in IFF/GSTR-1 & in GSTR 9
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
