Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 1252 - ITAT CHENNAIAdditional depreciation on the windmill - AO admittedly disallowed the claim on the ground that generation of electricity does not amount to manufacturing of article or thing - Held that:- An identical situation was considered by the Madras High Court in VTM Ltd. (2009 (9) TMI 35 - MADRAS HIGH COURT) wherein held that the assessee was engaged in the manufacturing of textile goods and electricity generated by the windmill was used for captive consumption in manufacturing of textile goods. In those circumstances, the Madras High Court found that the provisions of the Act does not state that setting up of new machinery or plant should have operational connectivity to the article or thing that was already being manufactured by the assessee. Activity of generation of power is manufacturing activity upheld. - Decided in favour of assessee
|