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2014 (4) TMI 1105 - AT - Income TaxAdditional depreciation u/s. 32(1)(ii) - whether assessee has not satisfied the condition of engaging in the business of manufacture or production of any article or thing?- Held that:- Generation of electricity is a manufacturing activity. The assessee is involved in the manufacturing activity and fulfills the conditions as laid down under section 32(1)(iia). The Government vide Finance Act, 2012 has amended the provisions of section 32(1)(iia) to include the business of generation or generation and distribution of power, eligible for benefit under section 32(1)(iia). Although the said amendment is with effect from 1.4.2013 but it gives impetus to the view that generation of electricity is a manufacturing process and qualifies for the benefits under section 32(1)(iia). See ACIT Vs. M.Satishkumar reported as (2012 (11) TMI 215 - ITAT CHENNAI). Rate of depreciation on civil and electrical fittings - Held that:- We find that this issue has also been dealt with in the case of R.Ramanathan Vs. DCIT (2011 (8) TMI 1143 - ITAT CHENNAI), wherein the Tribunal has held that wind mills are fabricated/erected on a specialized foundation and the civil and electrical components of the structure are indivisible parts of the wind mill parts as a whole. As such, the civil and electrical components of the wind mill structure cannot be dis- associated from the sole and substance of the wind mill and cannot be given a separate treatment for depreciation and directed the assessing authority to grant depreciation @ 80% on the whole cost of wind mill including civil and electrical components.
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