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2018 (5) TMI 430 - AT - Income TaxDepreciation of claim - asset put to use - Held that:- There is also a certificate issued by the engineers in respect of power generated between 27/03/2008 and 31/03/2008 which is a proof of the asset having been put to use during the year under consideration. The lower authorities have not brought any material on record which could be used as a basis for rejecting the assessee’s claim that the asset was put to use during the year under consideration. It is settled law that even if an asset is put to use for a single day, the same is eligible for depreciation. Therefore, we find that the lower authorities have misdirected themselves in disallowing the assessee’s claim of depreciation on the ground that the assessee was allegedly not the owner of the asset during the year under consideration and that the asset had not been put to use during the year under consideration. We reject the findings of both the lower authorities on this issue. Valuation of the wind turbines on the ground that the written down value in the books of the seller was much-much less than the value at which they were sold to the assessee company - Held that:- The sale price at which the seller had transferred these wind turbines to the assessee company was in fact paid by the assessee company to the seller company in the subsequent assessment year and the same had duly been reflected in the return of income of the seller company. Thus, we are of the considered opinion that in view of these evidences both the lower authorities were patently incorrect in disallowing the assessee’s claim of depreciation in respect of the wind turbines. Accordingly, we deem it fit to hold that the benefit of depreciation on wind turbines should be allowed to the assessee and we order accordingly by setting aside the order of the CIT (Appeals) and direct the AO to allow the benefit of depreciation on wind turbines to the assessee company.
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