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2020 (5) TMI 58 - AT - Income TaxReopening of assessment u/s 147 - disallowance of additional depreciation on new wind mills installed in wind power generation unit and on new plant & machinery installed in textile division - mere change of opinion on the same sets of facts as existed and under the knowledge of the ld. AO during the original assessment proceedings - HELD THAT:- The matter relating to claim of additional depreciation was therefore not examined by the Assessing officer. Where the matter has not been examined by the AO, there is no question of change of opinion as there is no formation of opinion at first place. The contentions so advanced by the ld AR that it is a case of change of opinion and reassessment proceedings cannot be sustained on such change of opinion is not accepted. We find that in the reasons so recorded by the Assessing officer, he has stated that by virtue of amendment brought-in by the Finance Act, 2012, the claim of additional depreciation u/s 32(1)(iia) is allowable w.e.f 1.04.2013 relevant to assessment year 2013-14 which ex-facie suggest that such claim has been wrongly claimed and allowed in the original assessment proceedings without examination is clearly a case of excess claim of depreciation and jurisdiction has been rightly invoked by the AO u/s 147. Disallowance of additional depreciation - HELD THAT:- In respect of claim of additional depreciation on energy saving devices which have been acquired and installed during the year, there cannot be any dispute as the same is clearly allowable under section 32(i)(iia) and the amendment brought in by the Finance Act, 2012 doesn’t in any manner impact such a claim of the assessee and thus, the disallowance so made of additional depreciation is hereby directed to be deleted. In respect of additional depreciation on windmills in respect of which the assessee has made additions under the head “ wind mills at wind power generation unit”, we find that the assessee is engaged in the business of manufacturing and sale of textiles (yarn & fabrics) and generation and supply of power and satisfies the necessary condition for claim of additional depreciation as prescribed under section 32(1)(iia) and such windmills have been acquired and installed in the financial year relevant to impunged assessment year 2012-13 much after 31.03.2005. Further, we find that the assessee’s case is squarely covered by the decision of the Coordinate Bench in case of Mangalam Cements 2017 (2) TMI 631 - ITAT JAIPUR wherein the amendment brought in by the Finance Act 2012 have been duly considered and additional depreciation on windmills for AY. 2008-09 and AY 2009-10 was allowed - Claim of additional depreciation on windmills is allowed and the ground of appeal is thus allowed.
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