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Additional depreciation under section 32(1)(iia) is available on which one of the following acquisitions by an eligible manufacturer?
AA second-hand machine bought from another Indian factory
BA new packaging machine installed on the production floor
CA new computer installed in the head-office administration
DA new delivery van registered as a road transport vehicle
Answer & Solution
Correct answer: B. A new packaging machine installed on the production floor
1. Additional depreciation requires NEW machinery or plant acquired and installed by an assessee engaged in manufacture, production or power generation/transmission/distribution.
2. It is denied for: machinery used previously by any person; machinery installed in office premises, residential accommodation or guest houses; office appliances; road transport vehicles; and assets fully written off in one year.
3. A new packaging machine on the production floor breaches none of these exclusions.
4. Options A, C and D each land squarely in one exclusion — second-hand use, office installation, and road transport vehicle respectively.
_Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 3 PGBP, PDF p. 23_
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