Investment allowance (section 32ac(1a) of income tax act

This query is : Resolved

Sonex (Querist)
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26 December 2015 We need your valuable Input for Investment Allowance [i.e. Section 32AC(1A) of Income Tax Act, 1961], so kindly consider follosing :

1. The manufacturing Company has acquired Machinery of Rs. 18 Crores in the Financial Year 2014-15.
2. The manufacturing Company has acquired Machinery of Rs. 12 Crores in the Financial Year 2015-16.
3. All machinery of Rs. 30 Crores (i.e. above 1 & 2) are installed in Financial Year 2015-16.

Kindly give your feedback, Whether the aforesaid Company is eligible to obtain benefit of Investment Allowance [i.e. Section 32AC(1A) of Income Tax Act, 1961] ?

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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26 December 2015 No, company is not eligible to deduction u/s 32AC(IA) since limit of 25 crore is applicable for amount invested in one year,installation date have no presence in this case.