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2012 (12) TMI 485 - AT - Income TaxDepreciation on windmill – Depreciation on Transformer and civil works as part of windmill - Treating them as individual items or forming part of windmill – Charge depreciation @ 15% or rate of windmill – The assessee claim depreciation on windmill on the total amount - like electrical equipment, civil construction work for electrical yard, inner road laid for crane movement - The AO allowed depreciation @ 15% on electrical equipment i.e. transformer and meter and 5% on approach road - Held that:- Following the decision in case of Asian Handloom that Specialized foundation and specialized area specifically earmarked to facilitate a flow of wind without hindrance, and specialized electrical fittings and high tension lines are all basic requirements for a wind mill plant. None of these requirements including the premises can be seen detached from what is called a ‘wind mill’ since a wind mill to work these are essential. All these are necessary inputs going into ultimate cost of such wind mill. In favour of assessee Disallowance u/s 14A – Held that:- In view of the smallness of quantum of new investments made during the relevant assessment year to the tune of Rs.1,61,124/-, no addition is warranted. Issue decides in favour of assessee.
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