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Before 2016 amendment there have been instances of positions taken by the department in some cases that carry forward of additional depreciation could not be allowed as there was no provision in the Act to allow carry forward of unabsorbed additional depreciation in the next year.

The taxpayer’s plea had been that there was no restriction either in claiming the carry forward.

Similarly in regard to allowance of additional depreciation on power generation machinery the department denied on the pretext that electricity is not an article or thing for that matter or that it has no operational connectivity to existing produce, the same is however allowable only post 2013 amendment that extend such benefit to also Assessee engaged in generation of power.

The Kolkata High Court decision in (2023] 458 ITR 754 (Cal) hold in favour of the assessee both on carry forward subject as well as with reference to eligibility to captive power generation.  Previously Madras High Court held in favour. On the machinery used in generation of power the Delhi High Court in (2920) 428ITR535 also made note of 2013 amendment as kind of clarificatory in nature , by expressly including power generation business too in the eligible bracket.

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