Additional Depreciation not Claimed in Preceding year can be allowed to TVS Pvt Ltd: ITAT directs AO to Calculate Correct Amount

The ITAT has directed the Assessing Officer to allow additional depreciation to TVS Pvt. Ltd. on the grounds that the company had not claimed it in the preceding year. The tribunal ruled that the right to claim additional depreciation is not forfeited merely because it was not availed in the year of asset acquisition. The ITAT directed the AO to re-calculate the correct amount of depreciation, providing significant relief to the company. The decision clarifies a critical aspect of tax law, affirming that taxpayers have the right to claim additional depreciation in subsequent years if they fail to do so in the initial year, preventing the loss of a legitimate tax benefit.