Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 877 - ITAT AHMEDABADClaim of higher depreciation on windmill – Expenses made on windmill – Held that:- Following the decision in CIT vs. Parry Engineering and Electronics P. Ltd. [2014 (12) TMI 752 - GUJARAT HIGH COURT] windmill would require a scientifically designed machinery in order to harness the wind energy to the maximum potential - Such device has to be fitted and mounted on a civil construction, equipped with electric fittings in order to transmit the electricity so generated - Such civil structure and electric fittings, therefore, it can be well imagined, would be highly specialized - the installation of windmill and the civil structure and the electric fittings are so closely interconnected and linked as to form the common plant - the legislature has provided for higher rate of depreciation of 80 per cent on renewable energy devises including windmill and any specially designed devise, which runs on windmill - The civil structure and the electric fitting, equipments are part and parcel of the windmill and cannot be separated from the same - The assessee's claim for higher depreciation on such investment was rightly allowed – Decided against revenue. Contribution to Group Gratuity Scheme disallowed – Held that:- Assessee has filed a Certificate of Commissioner of Income-tax, Ahmedabad-III, Ahmedabad dated 04.10.2011 and submitted that the gratuity fund is now approved by the Commissioner of Income-tax and that the expenditure claimed was allowable deduction to the assessee - this certificate was not available with the assessee during the course of assessment proceedings before the AO and during the course of appellate proceedings before the CIT(A) – thus, the order of the CIT(A) is set aside and the matter is remitted back to the AO for fresh adjudication – Decided in favour of assessee.
|