18 July 2009
hi, in a new unit, if p&m was purchased last yr. and no dep was claimed then, can additional dep be claimed this yr. as it is put to use now.
18 July 2009
The additional depreciation on the plant & machinery purchased in one FY and put to use in the next financial year is not possible as the language of the section is that the in case of the plant and machinery which has been acquired and installed after 31st March 2005. Te relevant portion of the section 32 of IT Act is reproduced hereunder. [ (iia) in the case of any new machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing, a further sum equal to twenty per cent. of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii): From the perusal of the above para it seems that the condition of acquiring and installation of the plant after 31. March 2005 is a jointly, not severally. So in my opinion, the additional depreciation can not be claimed on the plant and machinery purchased in one FY and installed in another FY.
18 July 2009
I am moderaring my reply as following -
The additional depreciation on the plant & machinery purchased in one FY and put to use in the next financial year is may be subject to litigation as the language of the section is that the in case of the plant and machinery which has been acquired and installed after 31st March 2005. The relevant portion of the section 32 of IT Act is reproduced hereunder. [ (iia) in the case of any new machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing, a further sum equal to twenty per cent. of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii): It seems that the condition of acquiring and installation of the plant after 31. March 2005 is a jointl, not several . So in my opinion, the additional depreciation would be a difficult proposition on the plant and machinery purchased in one FY and installed in another FY. Though one can contend before the authorities that the additional depreciation in such a case is possible as this condition is only for the first year of introduction of the section and not for the subsequent years.
CAclubindia
