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2012 (12) TMI 560 - AT - Income TaxAdditional depreciation on the windmill - Assessee was having three divisions - Whether each of divisions can be considered independently for the purpose of claiming additional depreciation u/s 32(1)(iia) – AO argued that installed capacity would not increase by 10%, taking into consideration installed capacity of the entire company instead of individual unit – Held that:- If the weaving division is considered independently, undisputedly, the capacity had increased by almost 80%. In the nature of business of the assessee, in yarn manufacturing, we are of the opinion that the weaving division can be considered as a separate undertaking. Its expansion having resulted in installed capacity by going up more than 10%, additional depreciation was indeed allowable. Issue decides in favour of assessee Whether failure to file Form 3AA along with ROI, could result in denial of the additional depreciation – Held that:- Following the decision in case of Parry Agro Industries Ltd. (2006 (5) TMI 63 - KERALA HIGH COURT) that non-production of audit report can only be considered as procedural lapse and assessee having cured the lapse before completion of assessment, a disallowance could not be made for this reason. Issue decides in favour of assessee
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