Claiming additional depreciation on second-hand machinery — only NEW P&M qualifies.
Claiming additional depreciation on office computers / equipment — these are excluded.
Forgetting that the balance 10% (when only 10% was claimed in year of acquisition) MUST be claimed in the very next P.Y., not later.
Claiming additional depreciation on road transport vehicles — these are barred (truck used INSIDE a factory is the only exception).
Claiming additional depreciation by service-sector / trading businesses — only manufacturing, power, and printing/publishing qualify.
Bare-Act text Section 32(1)(iia) · Income Tax Act, 1961 · click to expand
Section 32(1)(iia) — In the case of any new machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing or in the business of generation, transmission or distribution of power, a further sum equal to twenty per cent of the actual cost of such machinery or plant shall be allowed as deduction... Provided that no deduction shall be allowed in respect of (A) any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or (B) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or (C) any office appliances or road transport vehicles.