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2015 (3) TMI 846 - HC - Income TaxEntitlement to additional depreciation as per Section 32(1)(iia) - generation of electricity by wind mill amounts - ITAT allowed depreciation - Held that:- In the present case, the core business of the assessee is manufacturing and export of textile goods. During the assessment year 2006-07, the assessee had entered into the business of generation of power and installed one wind mill. The assessee maintained separate books of accounts for export division and the wind mill division. Since the assessee has treated the windmill division as separate business, the claim of additional depreciation has to be seen in the context of generation of power through windmill only and the production of textiles and its export has nothing to do with the generation of power for the purpose of considering additional depreciation. Further as rightly held by the Tribunal, the Revenue has not brought in any new or contra material to differ from the view of this Court in the decision of COMMISSIONER OF INCOME-TAX v. HI TECH ARAI LTD.(2009 (9) TMI 60 - MADRAS HIGH COURT) as it cannot be said that setting up of a wind mill will not fall within the expression setting up of a new machinery or plant - Decided in favour of assessee.
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