In a circular issued by Central Board of Direct Taxes(CBDT) clarified that, Business of manufacture or production of an article or thing, is eligible to claim additional depreciation under (iia) of sub-section (1) of Section 32 of the Income Tax Act, 1961.
The CBDT relied on recent verdict of Kerala High Court in the case Mathrubhoomi Printing & Publishing Co. in judgment dated 16-02-2015 also relied upon the Delhi High Court Judgment dated 31-05-2015 in the case of Delhi Press Patra Prakashan Ltd and held that printing and publishing activity is a manufacturing activity and therefore, assessee is eligible for grant of additional depreciation u/s 32(1)(iia).
“it is, therefore, a settled position that the business of printing or printing and publishing amounts to manufacture or production of an article or thing and is accordicgly eligible for additional depreciation u/s 32(1)(iia) of the Act. Henceforth appeals may not be filed on this ground by officers of the department and those alredy filed, in Courts/Tribunals may be withdrawn/not pressed upon”, the CBDT said in a clarificatory circular.
Read the full text of the Circular below.
