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2016 (1) TMI 402 - AT - Income TaxDepreciation on the boilers and windmill leased out by the assessee disallowed to the extent of 50% - Held that:- In the case before us, it is not in dispute that the boiler and windmill are not available in the market as such. It is an admitted fact that the assessee has to purchase various components and accessories of boiler and windmill and it has to be assembled and installed to make it as an asset, namely, boiler and windmill so as to enable the same to lease out to the lessee. Therefore, mere purchase of components and accessories of boiler and windmill cannot be construed as delivery of asset. It is for the assessee to bring into existence the asset, namely, boiler and windmill. The material available on record clearly shows that even though the components and accessories of boiler and windmill were delivered in the month of August, 1996, the assembling and installation were completed in the months of January, 1997 and March, 1997 respectively. Therefore, the boiler could have been delivered to the lessee only in the month of January, 1997 and the windmill in the month of March, 1997. In other words, unless various components and accessories of the boiler and windmill are assembled and constituted to fullfledged boiler and windmill, this Tribunal is of the considered opinion that there cannot be any delivery of the asset, namely, boiler and windmill. Therefore, full-fledged asset, namely, boiler and windmill came into existence only on 21.03.1997 and 31.03.1997 respectively. Therefore, this Tribunal do not find any infirmity in the order of the lower authority. Accordingly, the same is confirmed. - Decided against assessee
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