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2012 (4) TMI 147 - AT - Income Taxwindmill installed by assessee - claiming depreciation on written down value (WDV) basis at 15% - the quantum deduction claimed was half of the amount, as the asset was put to use for a period of less than 180 days - the assessee found claimed 15% to be incorrect and filed a letter before the AO to rectify the rate to prescribed rate of 80% - The AO rejected the claim as the assessee had not in fact, exercised its option to claim depreciation either on WDV method or on SLM and so also has not applied the correct rate of depreciation provided in the rules – assessee filed merely a letter rectifying the said mistake and not the revised return - as the assessee had claimed depreciation for the earlier assessment year on straight-line method, the same method and rate were followed for the subsequent impugned assessment year - assessee contested the point as the assessment year 2006-07 was the first year in which the assessee had claimed depreciation on windmill, thus the quantum of depreciation, whether under SLM or under WDV method, will be the same – Held that:- depreciation was for the first year, the depreciation was claimed on the original cost even though at a wrong rate and in the impugned assessment year, the depreciation was claimed again at wrong rate but on WDV method. Therefore, it is very clear that the assessee has exercised its option for choosing the method of providing for depreciation as prescribed in the statute - the assessee asked for adopting the correct rate which is in fact, was only a prayer to rectify a mistake apparent on record and not making any fresh claim no revised return need to filed – appeal of revenue rejected
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