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The Tax Publishers Fresh & Honest Cafe Ltd. v. Dy. CIT [ITA Nos. 1499 & 1500/Mds/2014, 1485/Mds/2015, dt. 5-5-2016] : 2016 TaxPub(DT) 2297 (Chen-Trib) Additions to fixed assets made for less than 180 days and additional depreciation claimed under section 32(1)(iia). Whether assessee was eligible for additional depreciation in the subsequent assessment year *Facts:* Assessee was found to have installed new plant and machinery for less than 180 days. In the next assessment year additional depreciation of 10% was claimed. Assessing Officer disallowed the same holding that there is no provision to carry forward the additional depreciation. On further appeal Commissioner (Appeals) upheld the decision of the Assessing Officer. On further appeal: Held in favour of the assessee that they were entitled to the additional depreciation under section 32(1)(iia) in the subsequent assessment year based on rulings of: M/s Automotive Coaches & Components Ltd. v. DCIT in I.T.A. No.1789/Mds/2014 dated 12-2-2016 Chennai ITAT Apollo Tyres v. ACIT (2014) 64 SOT 203 Cochin ITAT SIL Investment Ltd and Cosmo Films Ltd., Delhi ITAT MITC Rolling Mills (P.) Ltd. Mumbai ITAT Rittal India Pvt. Ltd., Karnataka high court There is no restriction imposed under section 32(1) (iia) plus purposive intent of the said section is for promoting investment in plant and machinery will enable such an allowance.

The Tax Publishers

Fresh & Honest Cafe Ltd. v. Dy. CIT [ITA Nos. 1499 & 1500/Mds/2014, 1485/Mds/2015, dt. 5-5-2016] : 2016 TaxPub(DT) 2297 (Chen-Trib)

Additions to fixed assets made for less than 180 days and additional depreciation claimed under section 32(1)(iia). Whether assessee was eligible for additional depreciation in the subsequent assessment year

Facts:

Assessee was found to have installed new plant and machinery for less than 180 days. In the next assessment year additional depreciation of 10% was claimed. Assessing Officer disallowed the same holding that there is no provision to carry forward the additional depreciation. On further appeal Commissioner (Appeals) upheld the decision of the Assessing Officer. On further appeal:

Held in favour of the assessee that they were entitled to the additional depreciation under section 32(1)(iia) in the subsequent assessment year based on rulings of:

M/s Automotive Coaches & Components Ltd. v. DCIT in I.T.A. No.1789/Mds/2014 dated 12-2-2016 Chennai ITAT

Apollo Tyres v. ACIT (2014) 64 SOT 203 Cochin ITAT

SIL Investment Ltd and Cosmo Films Ltd., Delhi ITAT

MITC Rolling Mills (P.) Ltd. Mumbai ITAT

Rittal India Pvt. Ltd., Karnataka high court

There is no restriction imposed under section 32(1) (iia) plus purposive intent of the said section is for promoting investment in plant and machinery will enable such an allowance.