Additional depreciation under sec 32(ii)

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Rohit Mishra (Querist)
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19 June 2009 is additional depreciation claimed under section 32 is optional in nature or is it compulsory to take it mandatory for the assessee in the return of income computed as per income tax act 1961.

if possible please provide relevant cases/judgment for any of option i.e. optional or mandatory.

taxindiaconnect

taxindiaconnect (Expert)
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19 June 2009 It is compulsory in nature. There is no need of any case laws etc. Please read the language of section 32(iia) you will find it is compulsary. The word used in the section is shall be allowed which means, if the assessee does not claim even then this deduction shall be allowed The relevent portion is 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):

Provided that such further deduction of fifteen per cent shall be allowed to-

(A) a new industrial undertaking during any previous year in which such undertaking begins to manufacture or produce any article or thing on or after the 1st day of April, 2002; or

(B) any industrial undertaking existing before the 1st day of April, 2002, during any previous year in which it achieves the substantial expansion by way of increase in installed capacity by not less than 9 [ ten per cent: ] 9

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CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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19 June 2009 its mandatory

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CA PARVEEN GAMBHIR

CA PARVEEN GAMBHIR (Expert)
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19 June 2009 When u talk that income computed as per I T Act, 1961 that means income computed after considering all the eligible deductions and inverse is ture for items not allowed expressly. It is a penal law. One needs to go strictly as per law.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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19 June 2009 In my opinion, it is optional.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 March 2012 Mandatory.
Reason is as follows:-
Explantion 5 says...... "this subsection"....
The subsection referred therein is 32(1).
Since additional depreciation under sub section (iia) falls under subsection (1),explanation 5 squarely applies to (iia) meaning thereby addtional depreciation is mandatory.

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