Balance 50% Additional Depreciation Allowed in Subsequent Year as First-Year Use Was Below 180 Days: Madras HC

Wheels India Limited Vs ACIT (Madras High Court) The Madras High Court considered a tax case appeal concerning entitlement to claim the balance 50% of additional depreciation under Section 32(1)(iia) of the Income Tax Act for new plant and machinery used for less than 180 days in the year of acquisition. The assessee had claimed only 50% of additional depreciation in the year of acquisition, as the machinery was put to use for less than 180 days, and sought to claim the remaining 50% in the subsequent assessment year. The Assessing Officer disallowed this claim, and the disallowance was upheld...