Additional Deprication

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CA Akhil Rastogi (Querist)
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15 September 2010 IF a company engaged in the business of power generation,(Electricity generation) only.

if the same co. Purchase any plant & machinery after date prescribed for additional deprication.

Wheather the generation of electricity is treated as manufacturing of article or thing as prescribed in sec of Add. dep.

can assessee claim add . dep on plant & machinery.

plz reply with sec and case law if any

Regards,
ca.Akhil

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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15 September 2010 Yes, the power generating company can claim additional depreciation ( 20%) on palnat & machinary. [ Sec 32(iia)]

Secondly, Electricity is movable property though it is not tangible. It is goods.