Case Law Details
Case Name : CIT Vs M/s Hi Tech Arai Limited (Madras High Court)
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All High Courts Madras High Court
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This article summarizes recent ruling of the Madras High Court (HC) in the case of CIT v M/s Hi Tech Arai Limited(Taxpayer) [Tax Case (Appeal) Nos. 670 and 671 of 2009] on the issue of allowability of additional depreciation on newly set-up windmills, under the Indian Tax Law (ITL), where the setting up of windmills had no connection with the main business activity of the Taxpayer. The HC held that, for the purpose of claiming additional depreciation under the ITL, it is not required for the setting up of new machinery or plant to have any operational connectivity with the main business of the Taxpayer.
Background and facts
- The Taxpayer is engaged in the business of manufacture of oil seeds, moulded rubber parts etc., apart from power generation.
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My query is one of my client is into the field of manufacturing and processing of labels. As per the provision of Income Tax Act,1961 any person,entity as the case may be is in the sector of manufacturing then they are entitled to claim addition depreciation U/s 32 of the I.T.Act,1961. Our client has purchased a fresh machinery in the year F.Y 2010-2011but has not claimed additional depreciation as per the provision of the Act. So my query is can we claim additional depreciation in the next year(i.e F.Y 2011-2012) or half of the additional depreciation for which we are entitled to as per the act?
With Regards
I want to understand if income tax benefit will be available for second hand windmill
please tell me that can we claim on windmill depreciation as per income tax if windmill is ready as on 31.03.2010 but that is not in production due to wind is not there and wind will come in may-10, so production will start after may-2010, but commissioning is ready before 31st march. and we have already commissioning certificate from Electricity board.