Allowance of Additional Depreciation of Oil Well u/s 32(1) (iia) of Income Tax Act: Gujarat HC dismisses

The Gujarat High Court dismissed the Revenue's appeal against the ITAT's order, which allowed additional depreciation on an oil well under Section 32(1)(iia) of the Income Tax Act. The court reaffirmed that oil wells qualify as "plant" for depreciation purposes, based on the precedent set in the Niko Resources case. This decision was consistent with a prior ruling in the assessee’s own case. The court found no substantial question of law, thus upholding the ITAT's classification of the oil well as "plant and machinery."