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2016 (8) TMI 1156 - HC - Income TaxAdditional depreciation on the windmill - generation of electricity by wind mill - Held that:- After the installation of the additional wind mills, both prior to as well as after the installation of the additional wind mills, the assessee was using wind energy for generating power for its capitative consumption apart from selling the surplus power generated to the Tamil Nadu Electricity Board. As far as application of Section 32(1)(iia) of the Act, is concerned, what is required to be satisfied in order to claim the additional depreciation is that the setting up of a new machinery or plant should have been acquired and installed after 31st March 2002 by an assessee, who was already engaged in the business of manufacture or production of any article or thing. The said provision does not state that the setting up of a new machinery or plant, which was acquired and installed upto 31.03.2002 should have any operational connectivity to the article or thing that was already being manufactured by the assessee. Therefore, the contention that the setting up of a wind mill has nothing to do with the power industry, namely, manufacture of oil seeds etc. is totally not germane to the specific provision contained in section 32(1)(iia) of the Act. See Commissioner of Income-Tax v. Atlas Export Enterprise(2015 (3) TMI 846 - MADRAS HIGH COURT ) (Mad.), which followed in Hi-Tech Arai's case (2009 (9) TMI 60 - MADRAS HIGH COURT) Thus upheld the order of the Tribunal, allowing additional depreciation. - Decided against revenue
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