COMMISSIONER OF INCOME TAX Vs. HINDUJA FOUNDRIES LIMITED

JUDGEMENT

(1.) Challenging the common order passed in I.T.A.Nos. 1591/Mds/2015, 1592/Mds/2015 and 1593/Mds/2015 in respect of the Assessment Years 2007- 2008, 2009-2010 and 2010-2011 on the file of the Income Tax Appellate Tribunal, Chennai "A" Bench, (for brevity, the Tribunal), the Revenue has filed the above appeals.

(2.) 1 The assessee is a limited company engaged in the business of Foundries. The Assessing Officer found that the assessee had claimed additional depreciation under section 32(1)(iia) of the Income Tax Act for the Assessment Years 2007-2008, 2009-2010 and 2010-2011 on the opening Written Down Value [WDV] on the plant and machinery purchased in the earlier years. The Assessing Officer further observed that the assessee had claimed the additional depreciation on the second half of the financial years 2005-06, 2007-08 and 2008-09 @ 10% on these plant and machineries and the remaining 10% in the subsequent financial years relevant to the assessment years in question. As the additional depreciation is allowable only in the year of purchasing the new plant and machinery, the Assessing Officer rejected the assessee's claim of additional depreciation on the brought forward opening WDV and added the same to the total income of the assessee.

(3.) The above appeals were admitted on the following substantial questions of law: