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2019 (12) TMI 774 - HC - Income TaxDepreciation on wind mills which was not actually put to use - HELD THAT:- ITAT held that prior to introduction of new concept of ‘block of assets’ with effect from 01.04.1988, the depreciation used to be claimed separately on each asset. The legislature found that this was a cumbersome procedure leading to various difficulties and therefore, the concept of ‘block of assets’ was introduced. It is further been held that the concept of ‘block of assets’ as reflected in the Central Board of Direct Taxes dated 23.09.1986 that once the various assets are clubbed together, they become block assets within the meaning of Section 2(11) of the Act and it becomes one asset and every time new asset is acquired, it is thrown into common hotchpotch i.e., block of asset on meeting the requirement of depreciation being allowable at the same rate. It is further been held that the individual asset meet their identity and become a new separate part of block of asset, insofar as calculation of depreciation is concerned. Income Tax Appellate Tribunal has held that the assessee is entitled to claim depreciation on the value of wind mills. We are in agreement with the view taken by the Income Tax Appellate Tribunal for the reasons which we have mentioned supra. Accordingly, the first substantial question of law is answered in the affirmative and in favour of the assessee and against the revenue.
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