Case Law Details
Bannari Amman Sugars Ltd. Vs DCIT (ITAT Chennai)
ITAT Chennai held that in case the assessee claims depreciation on the new asset, then, it cannot claim investment allowance under Section 32AC of the Income Tax Act.
Facts- The assessee is a resident company and is engaged in manufacturing of sugar, alcohol, granite and cogeneration of power from co-generation Unit. It was observed that there was a claim for additional depreciation at 20% by the assessee on the plant and machinery installed in the co-generation Unit by him. However, AO rejected the claim of the assessee and completed the assessment vide order dated 28-12-2018. CIT(A) rejected the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee misconstrued the provisions of section 32AC(4)(v) of the Act in as much as per said provisions, it is very clear that if assessee claims depreciation then it cannot claim investment allowances on new asset. The A.O and Ld. CIT(A) after considering the facts that the assessee already claimed 80% depreciation on new asset and further 20% additional depreciation giving total 100% depreciation on new asset has rightly re-computed u/s. 32AC of the Act and thus, we are inclined to uphold the order of Ld. CIT(A) and dismiss the appeal filed by the assessee.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
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