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2016 (1) TMI 609 - AT - Income TaxRate of depreciation to be applied on WDV of windmill installed by the assessee - assessee had claimed depreciation @ 80% on WDV of windmill, which was installed on 29.03.2006 - Held that:- Admittedly, such an asset was installed in earlier year, on which value of depreciation was claimed by the assessee, which in turn has been allowed by the Assessing Officer while completing assessment in the preceding year. The Assessing Officer is not empowered to disturb the WDV of an asset, which is the closing WDV of an asset of preceding year and re-calculate the depreciation in any manner, on the opening WDV of an asset.However, in the absence of any fresh evidence being brought on record by the Revenue authorities, the Assessing Officer cannot re-work the depreciation allowable on WDV of an asset. Thus, we hold that the Assessing Officer is not empowered to disturb the claim of depreciation on WDV of an asset, which was installed in the earlier years. We find no merit in the order of Assessing Officer in bifurcating the cost of windmill into cost of Wind Turbine, cost of erection and installation of windmills and civil construction work vis-à-vis Wind Turbine No.1, which was installed in assessment year 2006-07. Windmill installed by the assessee in the year under appeal - As per the Assessing Officer, cost of Wind Turbine entitles the assessee to the depreciation @ 80%. However, the cost of electrical installation would attract depreciation @ 15% and the cost of civil construction would attract depreciation @ 10% - Held that:- . The foundation work was an integral part of the machinery, since the machinery cannot function without foundation. In other words, even in cases where the assessee has incurred separate expenditures on the cost of foundation and installation of the machinery, then the same is to be considered as an integral part of cost of windmill, which in turn is entitled to higher rate of depreciation @ 80%. Similarly, various electrical items installed, which in turn ensures the functioning of windmill, forms part of windmill and is entitled to the depreciation @ 80%. Accordingly, we hold that the assessee is entitled to the claim of depreciation @ 80% on cost of windmill at ₹ 90 lakhs. - Decided in favour of assessee
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