Additional Depriciation u/s 32(1)(iia)

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CA Gaurav Makwana (Querist)
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11 December 2010 Hi,
I have a query regarding allowability of additional depreciation u/s 32(1)(iia). According to Chaturvedi & Pithashiya Book Law of Income Tax states that "if assest is eligible for additional depreciation and is acquired in later part of the year, 50% will be allowed in the year it is first brought to use and balance of 50% allowed in the next succeeding year." My question is whether is it so? and if it so is there any judgements supporting the same? please let me know it as soon as possible.

Thanks.

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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11 December 2010 I think, here 50% relates to the rate of additional depreciation, i.e 10% (20% x 0.50)...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 December 2010 Your observation in the referred book is undoubtedly correct in view of the 2nd proviso to section 32(1) of the Income tax Act,1961.
Therefore, no need to search for case laws to have a different legal standing.

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CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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20 June 2011 IN THE GIVEN CASE DEP WILL BE ALLOWED AT 10 PERCENT OF ACTAUL COST BUT NO CARRY OVER WILL BE ALLOWED BEACUSE UNDER SECTION 32(1)(IIa) ADDL DEP IS ALLOWED ONLY IN THE FIRST YAER OF INSTALLATION

CA MANOJ GUPTA
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