WHETHER ADDITIONAL DEPRECIATION AVAILABLE ?

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Gaurav Garg (Querist)
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03 April 2009 S R RESORTS LTD. IS A COMPANY RUNNING HOTEL, BANQUET HALL AS WELL AS RESTAURANT BUSINESS.
IN RESTAURANT DIVISION IT USES VARIOUS KINNDS OF KITCHEN INSTRUMENTS (MIXER GRINDER, MICROWAVE OVEN, DEEP FRIDGER, COKE REFRIDGERATOR ETC.) TO PREPARE AND PRESERVE DISHES.

NOW MY QUERY IS;
WHETHER SUCH KITCHEN INSTRUMENTS WILL FALL IN THE CATEGORY OF "PLANT & MACHINERY" FOR THE RESTAURANT BUSINESS ?

IF YES THEN WHETHER COMPANY CAN CLAIM ADDITIONAL DEPRECIATION OF 20% U/S 32 ON ADDITIONS UNDER KITCHEN INSTRUMENTS.

Taranjit Singh

Taranjit Singh (Expert)
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03 April 2009 The first condition to claim additional depreciation is...........It is allowable to all assesses engaged in the manufacture/ production of any article/ item/ thing.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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03 April 2009 u can not claim additional depreciation.

·Conditions for claiming Additional depreciation over & above Normal depreciation:

Condition
Description

I
It is allowable to all assesses engaged in the manufacture/ production of any article/ item/ thing.

II
New Plant & Machinery should be acquired & installed after 31st March’ 2005:

· Additional depreciation is not allowable in respect of Buildings & Furniture or Old Plant & Machinery.

· The condition of Acquisition & Installation of Plant & Machinery should be satisfied simultaneously, on failure of which additional depreciation cannot be claimed on same.

III
Additional Depreciation claim is available only in case of Eligible Plant & Machinery, wherein all Plant & Machineries are eligible except the following:

· Ships & Aircrafts; or

· Any machinery/ plant which is and Old/ Second hand.

· Any machinery/ plant installed in any office/ residential accommodation/ guest house accommodation.

· Any machinery/ plant whose total actual cost is allowed as a deduction in computing business income in any if one previous years.

IV
The rules of 180 days or above for calculating normal depreciation are applicable in case of calculation of additional depreciation.

Gaurav Garg

Gaurav Garg (Querist)
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04 April 2009 but dear friends,
my question is still unanswered.
please answer whether additional depreciation on kitchen instruments will be available or not ?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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03 August 2025 Yes, additional depreciation under Section 32(1)(iia) of the Income Tax Act is available on “plant and machinery” used in the business, including the restaurant business.

Key points for your query:
Kitchen instruments like mixer grinders, microwave ovens, deep freezers, refrigerators used in the restaurant business generally qualify as plant and machinery because they are used for the purpose of business and are integral to the production or preparation process.

Hence, such kitchen equipment can be classified as plant and machinery under the Income Tax Act.

Additional depreciation @ 20% is allowed on the actual cost of new plant and machinery acquired and installed during the year, provided:

The asset is new (not second-hand),

It is used for the purpose of business,

It is installed and ready to use during the previous year,

The business is not engaged in the business of generation or distribution of power.

Since your restaurant’s kitchen instruments fit these criteria, your company can claim additional depreciation of 20% on such assets if they are newly acquired and put to use during the financial year.

Summary:
Asset Type Additional Depreciation Applicable?
Kitchen instruments Yes (if new and installed in the year)

Note: Always maintain proper documentation and invoices to substantiate the claim.

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