Additional depreciation u/s32

Additional depreciation on P & M can be claimed @ 20% only if the asset is used by the assessee in the manufacture of an article or thing & installed after 31st march 2005. Such asset should be P & M(other than ships & air craft). This is in addition to basic 15% available on P & M.

Very important thing about Additional Depreciation is ,

1. It should be installed in Factory

2. It should be new.

3. It should be Plant & Machinery ( Other than Ship & Aircraft)

 

Your solution is  as follows:

 

Opening                     80,000

 

Add Addition           3,00,000

Less   Sold             3,20,000

Gross Value            60,000

Less: Deprec.        9,000   ( 60,000*15%)

Less Add Dep.      60,000  (3,00,000*20%)

Net Block Value     (9,0000)               i.e.     (+60,000-9,000-60,000)

friend...i think a part of the new machine purchased would have been sold as the op. bal. machines having wdv of rs.80000 can not practically sold for rs.320000... if yes then the ans above is correct... but i think it would b no...then the no addl.dep. will b claimed the machine sold...n normal dep will b claimed on the wdv...