If WDV at the end is less than the cost of the eligible P/M,
will additional depreciation be calculated on the WDV or the COST?
Is treatment same for Additional deduction u/s 32AD?
This situation could be possible only if the other assets are being sold on profit (i.e. above their WDV) and in such case treatment of WDV for eligible assets shall be taken normally and here is reason for that;
When you read section 32(1)(iia) you could clearly see there that additional depreciation is given @ 20% / 35% of the ACTUAL COST OF THE ELIGIBLE ASSETS (not of the WDV). Therefore WDV has nothing to do with the Additional Depreciation. But WHEN YOU WILL CHARGE NORMAL DEPRECIATION THEN THAT WILL BE CALCULATED ON WDV ONLY.
Now you question regarding 32AD; 32AD has NO LINKAGE WITH DEPRECIATION OR THE WDV. It is simply just this that if Certain Undertakings have invested certain sum in plant in machinery then you will be allowed ADDITIONAL DEDUCTIONS (NOT DEPRECIATION) @ 15% in the year of expense. BUT THERE IS A LOCK IN OF 5 YEARS under 32AD so you can't sold the same Assets. Although if you have sold all other assets of the block that would not have any impact u/s 32AD Deductions.
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