26 December 2014
If a machinery A is purchased for 200000 on 15.5.2014 and put to use on 31.1.2015 and depreciation is calculated @15%p.a. Does half rule be applicable in this case. If yes, then from which date and why? Assessment year is 2015-16
26 December 2014
As per proviso to section 32(1) if asset which is put to use for less than 180 days the depreciation will be allowed 50 % of normal depreciation.
Further, Additional depreciation under section 32(1(iia) will also reduced by 50 %.
You can also refer the ruling of Bombay High Court in case Dineshchand Gulabchand Agrawal.
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