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?
SANJAY TALATI
(Expert)
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
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
