International Cars & Motors Ltd. v. ITO

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The Tax Publishers2013 TaxPub(DT) 1130 (Del-Trib) : (2013) 051 (II) ITCL 0056 : (2013) 056 SOT 0050 INCOME TAX ACT, 1961 --Additional depreciationAllowability Conditions precedent--Assessee-company claimed additional depreciation on plant and machinery acquired in assessment year 2005-06, whereas it was installed in the year under consideration. Assessing officer and Commissioner (Appeals) both disallowed the claim holding that under section 32(1)(iia), there is specific condition along with installation of the new plant or machinery that these must also be acquired after 31-3-2005. *Held:* Authorities were justified in denying the claim for additional depreciation as conditions were not fulfilled. Income Tax Act, 1961, Section 32(1)(iia) In the ITAT, Delhi C Bench I. C. Sudhir, J.M. & B. C. Meena, A.M. International Cars & Motors Ltd. v. ITO ITA No. 860 (Del) of 2012 A.Y. 2006-07 21 December, 2012 Income Tax Act, 1961, S. 32(1)(iia) *Decision:* Against the assessee. Appellant by : K. Sampath Respondent by : Satpal Singh ORDER The assessee has impunged first appellate order on the ground that learned Commissioner (Appeals) has erred in confirming the disallowance of depreciation on plant and machinery under section 32(1)(iia) of the Income Tax Act, 1961 as made by the assessing officer. 2. The relevant facts are that the assessee had claimed additional depreciation amounting to Rs. 1,82,76,190 on plant and machinery aggregating to Rs. 18,27,61,898 which were acquired in assessment year 2005-06, whereas the installation of the said plant and machinery was completed on 31-1-2006 i.e. in the year under consideration. The assessing officer denied the claim on the basis that the plant and machinery were acquired in the assessment year 2005-06 i.e. before 31-3-2005. Hence the assessee is not entitled to claim additional depreciation because as per section 32(1)(iia) of the Income Tax Act 1961, additional depreciation is allowed in respect of 'new plant and machinery installed after 31-3-2005'. This disallowance was questioned before the learned Commissioner (Appeals) but the assessee could not succeed in the first appeal. The aggrieved assessee now has raised the issue before the Tribunal. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 1130 (Del-Trib) : (2013) 051 (II) ITCL 0056 : (2013) 056 SOT 0050

INCOME TAX ACT, 1961

--Additional depreciationAllowability Conditions precedent--Assessee-company claimed additional depreciation on plant and machinery acquired in assessment year 2005-06, whereas it was installed in the year under consideration. Assessing officer and Commissioner (Appeals) both disallowed the claim holding that under section 32(1)(iia), there is specific condition along with installation of the new plant or machinery that these must also be acquired after 31-3-2005. Held: Authorities were justified in denying the claim for additional depreciation as conditions were not fulfilled.

Income Tax Act, 1961, Section 32(1)(iia)

In the ITAT, Delhi C Bench

I. C. Sudhir, J.M. & B. C. Meena, A.M.

International Cars & Motors Ltd. v. ITO

ITA No. 860 (Del) of 2012

A.Y. 2006-07

21 December, 2012

Income Tax Act, 1961, S. 32(1)(iia)

Decision: Against the assessee.

Appellant by : K. Sampath

Respondent by : Satpal Singh

ORDER

The assessee has impunged first appellate order on the ground that learned Commissioner (Appeals) has erred in confirming the disallowance of depreciation on plant and machinery under section 32(1)(iia) of the Income Tax Act, 1961 as made by the assessing officer.

2. The relevant facts are that the assessee had claimed additional depreciation amounting to Rs. 1,82,76,190 on plant and machinery aggregating to Rs. 18,27,61,898 which were acquired in assessment year 2005-06, whereas the installation of the said plant and machinery was completed on 31-1-2006 i.e. in the year under consideration. The assessing officer denied the claim on the basis that the plant and machinery were acquired in the assessment year 2005-06 i.e. before 31-3-2005. Hence the assessee is not entitled to claim additional depreciation because as per section 32(1)(iia) of the Income Tax Act 1961, additional depreciation is allowed in respect of 'new plant and machinery installed after 31-3-2005'. This disallowance was questioned before the learned Commissioner (Appeals) but the assessee could not succeed in the first appeal. The aggrieved assessee now has raised the issue before the Tribunal.