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2017 (5) TMI 1712 - ITAT CHENNAIDepreciation on Windmills - put to use for a period more than 180 days or not? - @80% despite the windmills having been used for business purpose only after 30th September, 2010 - HELD THAT:- There is no doubt that electricity was generated by the windmills on itsconnection to the grid which admittedly happened on 17.07.2010. What is required u/s. 32 of the Act is that an asset should be put to use for claiming depreciation. There is no requirement that asset should be put to use for commercial production. Even otherwise in the case of electricity, whether generated during trial period or generated after trial run, the product remained very same. In the circumstances, we are of the opinion that the CIT (Appeals) was justified in taking a view that the windmills were put to use for a period more than 180 days during the relevant previous year and allowing the full claim of depreciation. Electrical installation for the windmill and cost of civil works for windmill - whether considered as part of the cost of the windmill and allowed depreciation at the rates prescribed for windmill? - HELD THAT:- When specified civil structures and specified electrical installation work are necessary for installation of a windmill, in our opinion such items cannot be considered as independent pieces of machinery or plant or building. In these circumstances, we are of the opinion that ld. Commissioner of Income Tax (Appeals) was justified in allowing the claim of the assessee.
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