Additional Depreciation
This query is : Resolved
08 September 2010
Sir,
Whether additional depreciation u/s 32(1)(iia) is available for plant & machinery purchased by rice mills. Whether the activity undertaken by rice & flour mills are considered as manufacturing/ production for sec 32?
Whether additional depreciation u/s 32(1)(iia) is available for plant & machinery purchased by rice mills. Whether the activity undertaken by rice & flour mills are considered as manufacturing/ production for sec 32?
09 September 2010
The Additional Depreciation on new Machinery or plant is allowed u/s 32(iia) to an assessee which is an Industrial Undertaking i.e. it should be engaged in the business of manufacture or production of any article or thing.
The term Industrial Undertaking has been used in several sections of the IT Act, however the same has not ben defined in the Act. The tem has elarorately been explained i the judgemetn rendered by Delhi High cour in the case of Ansal HSG & Construction Co. Ltd. V. CIT.
It was held in that case that :
Therefore, we are of the opinion that common sense approach will have to be adopted and those undertakings would qualify as industrial undertakings .which are involved in „manufacturing activity .
In your case, by no strectch of imagination , can it be said that the activity carried by the rice mill is a manufacturing activity and hence, additional depreciation would not be allowed.
The term Industrial Undertaking has been used in several sections of the IT Act, however the same has not ben defined in the Act. The tem has elarorately been explained i the judgemetn rendered by Delhi High cour in the case of Ansal HSG & Construction Co. Ltd. V. CIT.
It was held in that case that :
Therefore, we are of the opinion that common sense approach will have to be adopted and those undertakings would qualify as industrial undertakings .which are involved in „manufacturing activity .
In your case, by no strectch of imagination , can it be said that the activity carried by the rice mill is a manufacturing activity and hence, additional depreciation would not be allowed.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
