Additional Depreciation on Plant and Machinery

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Dhinesh kumar (Querist)
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25 June 2009 If a new machinery (other than ship and aircraft) is purchased during FY 2008/09, can the company can claim additional depreciation over and above the normal depreciation.

(ie 15% for Normal & 20 % for Additional Depreciation)

Is it applicable only for new industrial undertaking which begins production in FY 2008/09 (OR)
An Old Industry increased its Installed Capacity by more than 10% due to the said machinery.

Kindly suggest me in this regard

Santosh Mishra

Santosh Mishra (Expert)
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28 June 2009 Additional depreciation now a days can be claimed by any industrial unit for the value of addtionas to plant and machinery except those which are specifically excluded. Increase in capacity of production by the aditions to fixed assets is of no use, because the said restriction for claim of additional depreciation has been withdrawn as a consequence now a days additional depreciation even can be claimed if the addition made to plant and machinery does not envolve any increase in production capacity.