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2011 (6) TMI 325 - AT - Income TaxDis-allowance of depreciation on windmills – windmills installed & put to use on 31.03.05 – generation of electricity started in April 2005 – assessee admitted during survey that claim of depreciation was technical mistake - dis-allowance of bad debts – Held that:- Installation, commissioning and test run of the WEGs are sufficient to hold that the WEGs were used for the purpose of business during the previous year so as to enable the assessee to claim depreciation and additional depreciation on it. Further, the claim for depreciation has to be allowed if the conditions prescribed in law are satisfied and admission by the Assessee cannot be the basis to sustain the dis-allowance of depreciation. Decided in favor of assessee. In respect of bad debts it is held that loss on account of non payment of ICD was a capital loss and cannot be allowed under section 36(1)(vii) of the Act. Moreover, assessee has not established that the loss in question had occurred in the course of its business, the claim for deduction under section 28 cannot be allowed. Decided against the assessee.
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