ADDITIONAL DEPRECIATION

Additional depreciation is applicable only for the first year, in which the asset is purchased and put to use.

It is mandatory to claim depreciation under the Income tax act.

So you cannot claim additional depreciation in the subsequent year.

According to the case of Yellamma dasappa hospital, additional depreciation has to be claimed when the asset is put to use.

Additional Depreciation can be claimed only in the year the asset is put to use and only for 1st year this is applicable

it cant b claimed in subsequent years

Mandatory.
Reason is as follows:-
Explantion 5 says...... "this subsection"....
The subsection referred therein is 32(1).
Since additional depreciation under sub section (iia) falls under subsection (1),explanation 5 squarely applies to (iia) meaning thereby addtional depreciation is mandatory.

Additional Depreciation @ 20% can be claimed only in the Year of Asset put to use and if the asset is put to use for less than 180 days depreciation is to calculated 50% of total depreciation..

It cannot be claimed in any other subsequent year.

Please guide me whether this section be applicable to this case or not, if yes then how to calculate depreciation under this Section, in this particular case.

Assessee (XYZ Pvt Ltd) has imported a second hand Plant and Machinery for Rs.10cr from Germany in the year 2010, and the same was put to use on 22.01.2013.

As the Assessee had taken bank loan for it, so the Interest was capitalised and hence the cost of P&M become to around Rs.13cr upto 22.01.2013.

What would be the Depreciation as per Companies Act and Income Tax Act.

Thanks in Advance.