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2020 (3) TMI 1031 - HC - Income TaxAdditions rate of Depreciation on wind mill - claiming depreciation in the ITR can be treated as exercising of option before the due date as prescribed in the second proviso to Rule 5(1A) of the Income Tax Rules - HELD THAT:- CIT (A) had rightly decided the issue because in the case of the assessee the claim was made in the return of income as well as reflected in the audit report filed along with the return of income, therefore it would amount to exercise of the option as required under Second proviso to Rule-5(1A) and accordingly depreciation @ 80% on the windmill of the assessee has to be allowed. Further the Hon'ble Jurisdictional High Court in the case of CIT Vs. ABT Ltd. [2014 (10) TMI 788 - MADRAS HIGH COURT] has held as under:- "If the assessee exercised the option in terms of the second proviso to rule 5(1A) of the Income-tax Rules, 1962, at the time of furnishing of return of income, it will suffice and no separate letter or request or intimation with regard to exercise of option is required. Since the returns were filed in accordance with section 139(1) of the Income-tax Act, 1961, and the form prescribed therein makes a provision for exercising an option in respect of the claim of depreciation, no separate procedure is required." In these circumstances we do not find any reason to interfere with the order of the Ld. CIT (A) Since the returns are filed in accordance with Section 139(1) of the Income Tax Act and the form prescribed therein make a provision for exercising an option in respect of the claim of depreciation, no separate procedure is required, as contended by the Department. See M/S. KIKANI EXPORTS P. LTD. [2015 (2) TMI 680 - MADRAS HIGH COURT] - Decided in favour of the assessee and against the Revenue."
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