Income Tax - printing and publishing - Additional Depreciation
AN assessee, engaged in the business of manufacture or production of an article or thing, is eligible to claim additional depreciation under clause (iia) of sub-section (1) of section 32 of the Income-tax Act in addition to the depreciation allowance under sub-section (1) of section 32 of the Act.
Whether printing or printing and publishing amounts to manufacture or production of article or thing has been contested in legal forums.
The Kerala High Court in the case of Mathrubhoomi Printing & Publishing Co. vide its judgment in relied upon the Delhi High Court judgement in 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).
The Board has accepted the position that printing or printing and publishing amounts to manufacture or production of article or thing. The judgments of Hon'ble Delhi and Kerala High Courts on this issue have been accepted.
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 accordingly eligible for additional depreciation u/s 32(1)(iia) of the Act.
CBDT directs that henceforth, appeals may not be filed on this ground by officers of the Department and those already filed, in Courts/Tribunals may be withdrawn/not pressed upon.
CBDT Circular No. 15/2016., Dated: May 19, 2016