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2014 (12) TMI 752 - HC - Income TaxAdmission of appeal - Disallowance of excess claim of depreciation on windmill deleted – Held that:- The approach of both the authorities is perfectly justified - windmill would require a scientifically designed machinery in order to harness the wind energy to the maximum potential - Such device has to be fitted and mounted on a civil construction, equipped with electric fittings in order to transmit the electricity so generated - Such civil structure and electric fittings, therefore, it can be well imagined, would be highly specialized - Thus, such civil construction and electric fitting would have no use other than for the purpose of functioning of the windmill - the installation of windmill and the civil structure and the electric fittings are so closely interconnected and linked as to form the common plant - the legislature has provided for higher rate of depreciation of 80 per cent on renewable energy devises including windmill and any specially designed devise, which runs on windmill - The civil structure and the electric fitting, equipments are part and parcel of the windmill and cannot be separated from the same. Disallowance of Additional depreciation u/s 32(1)(iia) deleted – Held that:- The assessee's claim of additional depreciation at the rate of 20 per cent u/s 32(1)(iia) on the same windmill - Revenue opposed such claim on the ground that the assessee cannot be stated to be engaged in the business of manufacturing or production of any article or thing – this question needs consideration – thus, the appeal is admitted for considering the same – Decided partly in favour of revenue.
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