Additional depreciation

927 views 8 replies

abhishek jain

CA-Finalist

35 Points Joined October 2010

whether additional dep is available to a manufacturing concern on newly Installed plant & machinery , even if it is not used for manufacturing purpose...?????
As far as application of Sec.32 (1)(iia) of the Act is concerned, what is required to be satisfied in order to claim the additional depreciation is that the setting up of a new machinery or plant should have been acquired and installed after March 31, 2002 by an assessee, who was already engaged in the business of manufacture or production of any article or thing. The said provision does not state that the setting up of a new machinery or plant, which was acquired and installed after March 31, 2002, should have any operational connectivity to the article or thing that was already being manufactured by assessee.

Replies (8)

Deepesh Khatri

167 Points Joined December 2008

Provision to sec. 32(1)(iia) :

Provided that no deduction shall be allowed in respect of—

(A) any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or

(B) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or

(D) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains of business or profession” of any one previous year;]

If the new machinery or plant is outside the ambit of this provision, then it will qualify for additional depreciation.

CA AMANPREET SINGH

Chartered Accountant

284 Points Joined October 2009

It should not be used for Prohibited purposes. there is no other restriction.

CA ADITYA SHARMA

CA IN PRACTICE

16719 Points Joined May 2011

IT SHOULD BE USED DURING THE YEAR

C.A Tarun Shah

practice

271 Points Joined May 2008

i fully agree with Mr.Dipesh If plants & Macheries are ready to use then also eligible for addl.dep.it doesnot have any nexus with the manufacturing of goods

Mukesh Kumar Singh

CA-FINAL

4094 Points Joined January 2011

i m agree with mr. dipesh.

Mukesh Kumar Singh

CA-FINAL

4094 Points Joined January 2011

i m agree with mr. dipesh.

CS,CA F,Numrologi TusharSampat

CS CA F Numerologist Astrologer Graph

85935 Points Joined May 2010

Originally posted by : Deepesh
	Provision to sec. 32(1)(iia) : Provided that no deduction shall be allowed in respect of— (A) any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or (B) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or (C) any office appliances or road transport vehicles; or (D) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains of business or profession” of any one previous year;] If the new machinery or plant is outside the ambit of this provision, then it will qualify for additional depreciation.

AGREED.

Anit Sharma

CA Final student

460 Points Joined April 2011

Originally posted by : Deepesh
	Provision to sec. 32(1)(iia) : Provided that no deduction shall be allowed in respect of— (A) any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or (B) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or (C) any office appliances or road transport vehicles; or (D) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains of business or profession” of any one previous year;] If the new machinery or plant is outside the ambit of this provision, then it will qualify for additional depreciation.