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2015 (12) TMI 896 - AT - Income TaxAssessment u/s.153A - Held that:- In absence of any incriminating material, no addition can be made in the assessment u/s.153A Disallowance of additional depreciation - Held that:- Generation of electricity is a manufacturing activity and the assessee is eligible for additional depreciation u/s.32(1)(iia). Depreciation on electrical fittings used for mindmill - Held that:- CIT(A) correctly following the decision of the Tribunal in the cases of Poonawala Finvest Agro Pvt. Ltd. Vs. ACIT [2008 (6) TMI 586 - ITAT PUNE] held that on power evacuation, infrastructure, transformer, erection and commissioning of the structures, line work, electrical items will qualify for depreciation @80% whereas MEDA charges, site development expenses, cost of construction of controlled beam, civil work, internal road, development application charges, professional fees and bank charges will not qualify for higher rate of depreciation. She accordingly directed the AO to verify these expenses and allow depreciation on above items accordingly. Non making a claim u/s.80IA(4) in the original return of income filed u/s.139(1) - Held that:- CIT(A) was not justified in rejecting the claim made u/s.80IA(4) of the I.T Act merely because the assessee had not made the claim in the original return. Methodology of computation of deduction u/s.80IA(4) - Held that:- Each phase of windmill has to be considered as separate undertaking eligible for deduction u/s.80IA and therefore deduction u/s.80IA(4) should have been computed independently for each phase and not on consolidated basis. Applicability of provisions of section 80IA(5) - selection of initial assessment year - whether initial assessment year u/s.80IA(5) means year of installation of windmill or year in which the claim of deduction u/s.80IA is first made? - Held that:- The provisions of section 80IA(5) are applicable only from the initial assessment year, i.e. the assessment year in which deduction u/s.80IA was first claimed by the assessee after exercising his option as per the provisions of section 80IA(2) of the Act. - Decided in favour of assessee.
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