CBDT SETTLED DISPUTE REGARDING ADMISSIBILITY OF ADDITIONAL DEPRECIATION IN PRINTING OR PRINTING & PUBLISHING BUSINESS
(CIRCULAR NO 15 OF 2016 DATED 19TH MAY 2016)
Whether or not an assessee engaged in the business of printing or printing & publishing is eligible for grant of additional depreciation under Section 32(1)(iia) of the Income Tax Act’1961, has been a contentious issue. However, the Hon’ble Kerala High court in the case of “Mathrubhoomi Printing & Publishing Co.” & Delhi High Court in the case of “Delhi Press Patra Prakashan Ltd.” has already decided the matter in favour of assessee.
The Central Board of Direct Taxes has accepted the position that printing or printing & publishing amounts to manufacture or production of article or thing. The Board has issued a circular no 15/2016 dated 19th May 2016 and settled the disputes related to the said matter.
It is, therefore, a settled position that the business of printing or printing & publishing amounts to manufacture or production of an article or thing and is accordingly eligible for additional depreciation under Section 32(1)(iia) of the Income Tax Act’1961.The officers have been accordingly directed by CBDT that no fresh appeals on this ground is to be filed and those already filed, in Courts/Tribunals may be withdrawn.
The full extract of Board circulars can be viewed at –
http://www.incometaxindia.gov.in/communications/circular/circular15_2016.pdf
For any information or query in respect of the aforesaid matter, you may speak in person with CA. Bharat Poplani on 96463-80245.