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claim of Investment Allowance on Plant and machinery

08 May 2017

A listed company has taken substantial expansion and invested a sum of Rs 35 crores This includes capitalisation of electricity
bill and capitalisation of Interest on Bank loan
Whether company can claim Investment Allowance on entire amount of Rs 35 crores or on only Plant and machinery
Futher company wants to claim Additional Depreciation can company claim both
Please clarify

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4 Replies

RAMA KRISHNAN (247 Points)
Replied 08 May 2017

additional depreciation can be claimed only on plant and machinery subject to conditions

Prabhakar Latkan (CA) (76 Points)
Replied 08 May 2017

Please give feedback of conditions for claim of Additional Depreciation

RAMA KRISHNAN (247 Points)
Replied 09 May 2017

1. plant and machinery (pm) except ships or aircraft or office appliances or road vehicles, should have been newly bought
2. it shouldn't be installed in office premises, residential accommodation or guest house
3. shouldn't be used either within India or outside India by anyother person
4. full cost of the pm shouldn't have been claimed as depreciation
5. should be put in use for 180 days or more for full claim of additional depreciation orelse only 50% of additional depreciation is allowed
6. assessee should've been engaged in manufacturing or production of article or thing or generation or generation and distribution of power