Terminal allowance under clause(iii) of section 32(1) available only to power generating units

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One Comment

Reference is invited to Explanation 1(b) to clause (iii) which has the phrase “where the building, machinery, plant or furniture is sold” which are the same as mentioned in the first clause (i). Secondly, the first clauses (i) and (ii) speak about the assets on which depreciation shall be allowed while the latter clauses (i) to (iii) talk about the extent of depreciation that shall be allowed for the first two kind of assets. Hence, in my view, allowance of Terminal Depreciation is what is the intent of the legislation.