17 November 2009
client purchased new machinery in the month of march 2005 and claimed additional depre @10% [i.e. 50% of rate 20% as used for less than 180 days]. again client claimed rest 10% additional depreciation in the year 2006-07 A.Y.07-08.However AO disallow such claim o the ground that additional depreciation only allowed in the year of purchase only. My question is if AO is right then client claim full rate additional dep @20% or client right in his claim to get remaining 50% rate of additional depreciation in the next year i.e. 06-07. thanking you, manish patel
17 November 2009
In the situation referred above additional depreciation @ 10 % only is eligible, as per the referred section, in the year of acquisition and installation of the machinery. Subsequent years claim is not in accordance with law. So , as per my understanding, the view of the ITO is correct.
CAclubindia
