Additional Depreciation

1454 views 3 replies

Dear All,

Our's is a construction company engaged in construciton of Bridges, Roads, Industrial Buildings etc., We have claimed addtional depreciation on our construction equipment used in construction and also in pre fabricating gudders etc., The concerned Asessing Officer is of the opinion of disallow the same.

Can we claim the above depreciation ? if yes please, refer me the relevant case laws if any available.

regards

Pradyumna t s

Replies (3)

Mr. Pradyumna could you please tell me on what basis are they not allowing the additional depreciation.


In the given case:

Madras High Court (HC) in the case of CIT v M/s Hi Tech Arai Limited (Taxpayer) [Tax Case (Appeal) Nos. 670 and 671 of 2009] on the issue of allowability of additional depreciation on newly set-up windmills, under the Indian Tax Law (ITL), where the setting up of windmills had no connection with the main business activity of the Taxpayer. The HC held that, for the purpose of claiming additional depreciation under the ITL, it is not required for the setting up of new machinery or plant to have any operational connectivity with the main business of the Taxpayer.

 

The assesse was allowed addtn dep. even the p/m was not associated with the main business, yhen why the IT officer is refusing in your case as your P/M is directly related to the main business activity.


In my opinion it will be allowed

dear TS pradyumna...............additional dep is allowed u/s 32(1)(iia) only if assessee in engaged in m/f or production of any article or thing........considering ur business activity i dont think there is any m/f or production of article in ur business........so accordingly the same will be disallowed

Please  refer the following case laws:

ITA 491/PN/2010 in the Case of

1.Shri Bharat Cement, shiroli Vs DCIT circle 2 Kolhapur and 

2. Cherian Varkey construction co P Ltd Vs UOI: 406 ITR 262 (Ker) of 1-12-2017

It is held that Road contractors are allowed to claim Additional Depreciation 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details