Conversion of natural gas to CNG is Manufacture & Additional depreciation Allowable

ACIT Vs Indraprastha Gas Ltd. (ITAT Delhi)

Conclusion: When a commodity acquired a distinct name, use and commercial identity, it would acquire the trait of ‘manufacture’. Therefore, the activity of conversion of natural gas to compressed natural gas was entitled to avail  additional depreciation under section 32(1)(iia).

Held: Assessee–IGL was a City Gas Distribution Company

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