“Section 132(1)(iia)”

An assessee is entitled to claim the balance 10% of additional depreciation in the succeeding assessment year if the new plant and machinery were put to use for less than 180 days in the previous year.

The balance 50% of additional depreciation, for new machinery or plant put to use for less than 180 days in the year of acquisition, is allowable in the immediately succeeding assessment year. The second proviso to Section 32(1)(iia) restricts only the allowance for the first year, not the total benefit.

Additional depreciation under section 32(1)(iia) that is not claimed in the year of purchase can be allowed in a subsequent year, even if the claim is made during assessment proceedings.

A receipt can be capital in nature and simultaneously chargeable to tax under the Income-tax Act by virtue of a legal fiction.