12 January 2017
section 32 (1)(iia) provides for additional depreciation in the case of any new machinery and plant, other than ships and aircraft. Such machinery and plant have to be acquired and installed after 31.03.2005 by the assessee engaged in the- business of manufacture; or production of any article or a thing or in the business of generation or generation and distribution of power (inserted vide Finance Act, 2013 with effect from 01.04.2013) to avail such depreciation. The depreciation is eligible for a further sum equal to 20% of the actual cost of such machinery or plant. The second proviso to Section 32(1) (iia) provides that no deduction under additional depreciation shall be allowed in respect of-
(i) any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or (ii) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or (iii) any office appliances or road transport vehicles; or (iv) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head "Profits and gains of business or profession" of any one previous year. Hence truck is not eligible for additional depreciation.