Additional Depreciation Clarification Needed
As per section 32 in case any new plant/machinery is acquired and installed during the previous year then additional depreciation of 20% is allowed.
Issue involved: whether installation of plants/machineries should be within the same financial year in which they are acquired. In other words can assets be put to use in the subsequent financial years and still the additional depreciation be claimed in the year in which asset is first put to use.
For Example: If a machine is purchased during the financial year 2014-15 but same is installed during the financial year 2015-16. Can additional depreciation of 20% be claimed in A.Y 2016-17 or eligibility of additional depreciation shall laps because acquisition and installation falling under two different years.
