TMI Blog2015 (1) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... gral part of the renewable energy devices and allowed depreciation @ 80%. - A wind mill, which is admittedly a source of renewable energy, cannot possibly function without power evacuation infrastructure and, therefore, to hold that it is not integral to a wind mill would be travestying of facts and justice. It would be necessary to clarify that we are not dealing with an ordinary device, where transmission lines and electricity generation devices are involved but a wind mill, which obviously cannot supply electricity without power evacuation infrastructure as integral to its very functioning and user. Consequently, we answer questions of law against the revenue - Decided against Revenue. - ITA No. 350 of 2013. - - - Dated:- 18-12-2014 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me was in fact not a Renewable Energy Device. iii) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was right in treating the electrical lines for power transmission and metering as part of Renewable Energy Device eligible for depreciation @ 80% whereas the A.O. has brought on record sufficient material to prove that the transmission and distribution network was actually Plant and Machinery which is eligible only for normal rates of depreciation @ 15%. It is by no stretch of imagination a part of the power generation Wind Mill Device. It's only function is the transmission of the generated power to the common grid. Counsel for the revenue submits that by treating power of evacuation infrastructu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire paper book including orders passed by the Assessing Officer, CIT(A) and the ITAT (B), Chandigarh. The dispute that has given rise to these substantial questions of law is the nature of power evacuation infrastructure attached to a wind mill, a renewable energy device and whether this infrastructure would be eligible for depreciation @ 80% or 15%. The Assessing Officer after a laboured attempt to separate the renewable energy devices, in the case a wind mill for the power evacuation infrastructure referred to the nature of renewable energy, wind mills etc. and held that power evacuation infrastructure is not an integral part of a renewable energy devices and, therefore, proceeded to hold that depreciation shall be calculated at 15%. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the balance, it was intimated, will be utilized towards running and maintenance of substation . 22. In the alternate, learned counsel submitted that the payment made to GEDA atleast to be treated as revenue expenditure. If the revenue treats this as not something owned by the assessee (substation), then it naturally follows that assessee contributed the above amount for creation. of substation, which is the property of GEDA. In that case, learned counsel submitted, the decision of the Hon'ble Calcutta High Court in the case of CIT vs. Birla Jute Manufacturing Ltd., reported in 182 ITR 497 (Cal) is clearly applicable: Learned counsel submitted, the same view has been taken by the Hon'ble Bombay High Court in the case of CIT vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment made for overhead service line, which remained the property of Electricity Board, is allowable as revenue expenditure: On facts, in the instant case of the assessee, the payment to GEDA is to be allowed in the light of this decision of the jurisdictional High Court. Hence, appeal by the assessee with regard to Ground No.1, 2, 3 and 4 are allowed. Since the facts of the present case are similar to the facts involved in the aforesaid referred to case of Trumac Engineering Co. Pvt. Ltd. Mumbai Vs. ITO (supra), so, respectfully following the aforesaid referred to decisions dated 27.6.2008 of ITAT, Mumbai Bench 'I', we do not see any valid ground to interfere with the findings of the Ld. IT (A). 11. For assessment year 2009- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l cannot function without appropriate installation and electrification. In other words, the installation of windmill and the civil structure and the electric fittings are so closely interconnected and linked as to form the common plant. As already noted, the legislature has provided for higher rate of depreciation of 80 per cent on renewable energy devices 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 assessees claim for higher depreciation no such investment was, therefore, rightly allowed. A perusal of the aforesaid judgment reveals that the Rajasthan High Court placed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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