Additional Depreciation PGBP

I would like to explain my doubt regarding S.32(1)(iia) with an example.

Say i had a block consisting of a machine with WDV of 2,00,000.
During the year i purchased an "eligible asset" of 10,00,000 and sold the earlier machine at 11,00,000.

so the WDV at the end of the block is 1,00,000
but the additional depreciation allowable if calculated on cost would be 2,00,000 (20% of 10,00,000)... thus additional dep exceeding the WDV.
My doubt is regarding this case.
Should the additional dep in this case be calculated on the WDV at the end or the Cost only?