2016 (1) TMI 1289 - AT - Income Tax

Deduction u/s.80IA - whether each of the windmill was a separate undertaking? - Held that - As in assessee s own case for the A.Y. 2006-07 2015 (10) TMI 2649 - ITAT CHENNAI observed that each windmill is to be considered independent and separate and as a consequence deduction u/s.80IA to be computed and decided the issue in favour of the assessee. Accordingly the CIT(Appeals) is justified in allowing the claim of deduction u/s.80IA of the Act to the assesse and this ground of the appeal of the Revenue is dismissed. Depreciation claim @ 60% on UPS accepted. See 2014 (11) TMI 1121 - ITAT CHENNAI .

Summary

Issues:
1. Allowance of deduction u/s.80IA of the Income Tax Act.
2. Depreciation rate on UPS.

Analysis:
1. The first issue pertains to the allowance of deduction u/s.80IA of the Income Tax Act. The case involved the appellant challenging the Commissioner of Income-tax(Appeals) order directing the Assessing Officer to allow the deduction. The appellant had seven windmills generating power for consumption and supply to TNEB. Each windmill was treated as a separate undertaking based on separate agreements, connections, and approvals. The Tribunal had previously ruled in favor of treating each windmill independently for the purpose of deduction u/s.80IA. The CIT(Appeals) rightly allowed the deduction, and the Revenue's appeal was dismissed.

2. The second issue revolved around the depreciation rate on UPS, where the CIT(Appeals) allowed 60% depreciation instead of the 15% granted by the Assessing Officer. The Tribunal referred to a previous order in the appellant's case where similar depreciation treatment was upheld. The Tribunal dismissed the Revenue's appeal on this ground as well, citing consistency with past decisions. Consequently, the appeal of the Revenue was dismissed in its entirety, affirming the decisions made by the lower authorities.

In conclusion, the judgment by the Appellate Tribunal ITAT CHENNAI upheld the decisions of the lower authorities regarding the allowance of deduction u/s.80IA and the depreciation rate on UPS. The Tribunal's analysis emphasized consistency with past rulings and treated each issue based on established legal principles and precedents.