The WDV of plant & machinery in the books of AlphaLtd. is 75 lac's as on 1st April 2010, on which date , the installed capacity of the company was 12000 tons.
Alpha Ltd borrowed Rs 10,00,000 @ 10% from ICICI Bank on 1.08.2010 for purchase of new plant & machinery for extension of its existing business, which would increase its installed capacity to 13000 tons.
The new plant and machinery purchased on the same date but was put to use only w.e.f 1-11-2010. compute the depreciation admissible under section 32 for A.Y 2011-12 assuming the applicable rate of
depreciation on plant and machinery to be 15%
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