Additional Depreciation

Dear Giriraj,

        For claiming enhanced depreciation, the assessee must be engeaged in the manufacture or production of any article or thing. A construction contractor just converts the raw materials (sand, bricks etc) into a building. However, he does not buy the raw materials of his own. The R.M. is provided by the owner. The contractor jos is to just convert these things into a house. SO there is no scope for enhanced depreciation.

         However, if a person buys sand, bricks, cement etc of his own and constructs a property, he can claim enhanced deprection, provided he is engaged in teh business of doing so

Good and well Explained by  CA.G.Muguntha Narayanan .