Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 1115 - KARNATAKA HIGH COURTAddition depreciation - manufacture or production of an “article” - assessee in addition to carrying on the business of gold mining is also in the business of generation of electricity through windmill as second line of business - Whether Section 32(1)(iia) includes the business of generation and distribution of power to avail the benefit of additional depreciation? Held that:- The material on record shows that the assessee is generating electricity through windmill as a second line of business. It is a product of the assessee company. It is covered under the words “article” or “thing”, which is tradable / identifiable. In other words, the electricity falls within the definition of Sale of Goods Act, 1930, and process of generation of electricity is akin to manufacture or production of an “article” or “thing”. The power generated need not necessarily be used in the production of assessee’s own products namely mining and extraction of gold. The use of electricity in the manufacturing activity of the core business of the assessee is not a precondition for the grant of additional depreciation under the statue. Therefore, we do not see any merit in this appeal. Accordingly, this appeal is rejected. However, we have not gone into the question of applicability of Section 32(1)(iia) of the Income Tax Act, 1961, and the question as to whether clarificatory or not is kept open to be decided at proper time.
|