Additional depreciation

A firm is engaged in processing of fabrics for others in textile industry. can it be called as a manufacturing concern to claim additional depreciation on the new additions to plant and machinery.??? pls provide case laws if any...

Replies (3)

As per Section 32(1)(iia) if any new Plant or machinery other than ships and aircraft which has been acquired and installed after 31st March, 2005 by an assessee who is engaged in the business of manufacture or production of any article or thing, then additional depriciation @ 20% of actual cost shall be allowed as deduction.

There is no such defination of manufacture in this section. And i guess this would constitute as manufacture or prodution whether you do it for self or others, hence you can claim for additional depreciation.

As per the definition of manufacture given under section 2 (29BA):

“manufacture”, with its grammatical variations, means a change in a non-living physical object or article or thing,—

(a) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or

(b) bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structure;]

if such condition is fulfilled in your case then you can claim additional depreciation.

can i claim additional depriciation on machinery that use for  manufacture of raw matrial 

 

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