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2015 (8) TMI 1350 - AT - Income TaxValidity of reopening of assessment - depreciation on windmills - Held that:- The relevant facts and material concerning the depreciation on windmills etc. was admittedly placed before the Assessing Officer in the original assessment proceedings and the Assessing Officer after due indulgence passed the assessment order. The only reason for reopening is audit objection received by the Assessing Officer which led to issuance of notice under section 154 initially, followed by notice under section 148 of the Act. The Hon’ble Bombay High Court in the case of M/s Jet Speed Audio Pvt. Ltd. (2015 (2) TMI 766 - BOMBAY HIGH COURT) affirming the order of the Tribunal held that re-assessment without mention of any tangible material in the reasons recorded is unjustified. On merits, the Ld. Authorized Representative for the assessee contended that the civil construction work and electrical installation is vital and integral part of the windmills and cannot be isolated. The civil construction and electrical work are specifically designed for operation of the windmills and are not separable. Therefore, depreciation on these structures/fittings have to be applied at the same rate, as is available to the principle asset i.e. windmill. For this proposition, he relied on the decision of Hon’ble Bombay High Court in the case of CIT vs. Cooper Foundary Pvt. Ltd. [2011 (6) TMI 837 - BOMBAY HIGH COURT ]. It was held by the Hon’ble High Court in that case that findings recorded by the Tribunal that RCC foundation forms integral part of the windmill is a finding of fact and no question of law arises from the same. Thus, on merits as well the assessee has prima facie case in its favour. Since the appeal of the Revenue is dismissed on the issue of jurisdiction assumed by the Assessing Officer under section 147, the issue on merit has become academic.
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