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2017 (9) TMI 1860 - HC - Income TaxReopening of assessment u/s 147 - disallowance of additional depreciation u/s. 32(1)(iia) - Tribunal in upholding the decision of CIT(A) in quashing the reassessment proceedings - HELD THAT:- In this case the assessment year involved is A.Y. 2008-09 where the assessment under section 143(3) was originally completed on 31.12.2010 and notice has been issued u/s 148 on 17.08.2012. Therefore, the proviso to section 147 is not relevant and therefore not been considered by us. Whether the issue of claim of additional depreciation has been examined by the Assessing Officer in the course of original assessment proceedings or not? - Briefly the facts of the case are that the assessee is engaged in the business of manufacturing of cement. For uninterrupted supply of power, assessee during the year, acquired and installed new P&M i.e. power plant at Morak and a windmill at Jaisalmer for production of electricity for captive consumption in manufacturing of cement. The electricity produced from power plant at Morak was directly utilized in manufacturing of cement whereas the electricity produced from windmill at Jaisalmer was supplied to Jaipur Vidhyut Vitran Nigam Ltd. who in turn reduce that quantity of electricity from the power bill raised on the assessee. On these P&M, assessee claimed additional depreciation u/s 32(1)(iia) of the Act. Firstly, in the reason recorded before issue of notice u/s 148, the AO has stated as under: As the additional depreciation was allowable only on such plan and machinery which came under the clause (ii) of section 32(i) of Income Tax Act, while the assets of power generating units have been covered under the clause (i) of the ibid section, therefore no amount of additional depreciation was allowance on the assets of Mangalam Power Plant, Morak unit and Mangalam Wind Power plant in Jaisalmer. - Decided against revenue
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