29 August 2008
As per depreciation chart I can claim 80% depreciation on windmill(Renewed energy device).
Can I claim additional 20% depreciation as per Section 32
(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) :
04 July 2012
Yes the assessee is entitled to claim additional depreciation even if the windmill is NOT connected to the process of manufacture of production.
In case of CIT v. VTM Limited (2009) 319 ITR 336 (Mad.) it was held that for claiming benefit u/s 32(1)(iia) what is required to be satisfied is that the new machinery or plant should be acquired and installed after 31 March, 2005 by an assessee already engaged in the manufacture of an article or thing.
The provision does not state that the new machinery or plant should have operational connectivity with the article or thing taht is already being manufactured by the assessee.
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