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2012 (11) TMI 215 - AT - Income TaxAdditional Depreciation on the windmill - disallowance as the assessee is not involved in manufacturing of any goods - Held that:- As decided in N.T.P.C. Limited, Versus Deputy Commissioner of I.T. [2012 (5) TMI 127 - ITAT DELHI] generation of electricity is akin to manufacturing of a new product. CST Vs. Madhya Pradesh Electricity Board [1968 (11) TMI 85 - SUPREME COURT OF INDIA] as held that electricity falls within the definition of goods under the provisions of Sale of Goods Act, 1930. Thus the assessee is involved in the manufacturing activity and fulfills the conditions as laid down under section 32(1)(iia). The Government vide Finance Act, 2012 has amended the provisions of section 32(1)(iia) to include the business of generation or generation and distribution of power, eligible for benefit under section 32(1)(iia). Although the said amendment is with effect from 1.4.2013 but it gives impetus to the view that generation of electricity is a manufacturing process and qualifies for the benefits under section 32(1)(iia) - in favour of assessee.
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