Section 32 of Income tax Act, 1961— additional depreciation— In  the instant case, revenue has proposed following question—

Whether the ITAT is right in deleting the disallowance of additional depreciation claimed by assessee u/s 32(1)(ii)?

The assessee claimed the additional depreciation of Rs. 1,11,25,307/on the power plant and electric installations. The Assessing Officer declined to grant such additional depreciation taking the view that plants and machinery are covered under section 32(1)(i) of the Act, on which, normal depreciation is allowable.

Held that— The issue raised by the Revenue is no longer resintegra in view of a decision of the Delhi High Court in the case of Principal Commissioner of Incometax, New Delhi Vs. NTPC Sail Power Co. (P.) Ltd. reported in [2019] 103 taxmann.com 398 (Delhi).

The provision i.e. Section 32 of the Act has been amended by the Finance Act, 2012 and the assessee engaged in the generation of power has expressly been included in the ambit thereof. The Delhi High Court by placing reliance on Supreme Court decision referred to above ultimately took the view that the electricity has all the necessary trappings of “articles” or “things” and the benefit of additional depreciation cannot be denied.[PR. COMMISSIONER OF INCOME TAX, SURAT-1 VERSUS M/S KADODARA POWER PVT LTD.] [2019] 16 ITCD Online (20) [GUJARAT HIGH COURT]