This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Terminal allowance under clause(iii) of section 32(1) available only to power generating units
Case Law Details
- Case Name
- DCIT Vs SAMKRG Pistons & Rings Ltd. (ITAT Hyderabad)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- ITAT Hyderabad
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
Advertisement
RELEVANT PARAGRAPH
8. Everything revolves around clause (iii) of section 32(1). The said clause provides that in case any of the assets specified therein on which depreciation is claimed and allowed under clause (i), is sold, discarded, demolished, and if the monies payable fall short of the w.d.v, such shortfall will be allowed as deduction provided the same is written off in the books of account.
The dispute is as to which is the clause (i) which is referred in clause (iii). According to the learned counsel for the assessee, it is the first clause (i) which is referred t...
Reference is invited to Explanation 1(b) to clause (iii) which has the phrase “where the building, machinery, plant or furniture is sold” which are the same as mentioned in the first clause (i). Secondly, the first clauses (i) and (ii) speak about the assets on which depreciation shall be allowed while the latter clauses (i) to (iii) talk about the extent of depreciation that shall be allowed for the first two kind of assets. Hence, in my view, allowance of Terminal Depreciation is what is the intent of the legislation.