TMI Blog2014 (12) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... use other than for the purpose of functioning of the windmill - the installation of windmill and the civil structure and the electric fittings are so closely interconnected and linked as to form the common plant - the legislature has provided for higher rate of depreciation of 80 per cent on renewable energy devises including windmill and any specially designed devise, which runs on windmill - The civil structure and the electric fitting, equipments are part and parcel of the windmill and cannot be separated from the same. Disallowance of Additional depreciation u/s 32(1)(iia) deleted – Held that:- The assessee's claim of additional depreciation at the rate of 20 per cent u/s 32(1)(iia) on the same windmill - Revenue opposed such claim o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch run on windmills . Insofar as the main equipment of windmill is concerned, the department had no dispute about such claim being granted. The disputed items are as follows; 1 Amount of interest on term loan for windmill, before installation Rs.2,52,752/- 2 The amount of civil works, installation, labour and foundation work of windmill ₹ 44,18,239/- 3 The amount paid to GEDA for land application fee and reimbursement of power evacuation ₹ 18,50,000/- TOTAL RS: Rs.65,20,991/- 3. Insofar as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority was confirmed by the Tribunal in the impugned judgment, in the following terms; 4. We have considered rival submissions and perused the orders of the AO and the CIT(A). The depreciation is allowable on renewable energy device which also includes windmill. The depreciation at the rate of 80% is allowable on the entire device which is capable of generating electricity using wind energy. There is no provision in the Act to bifurcate the device into several parts and allow depreciation thereon at different rates of depreciation. The foundation, civil and electrical works are necessary for the installation of the windmill and is clearly part and parcel of the windmill project on which depreciation at the rate of 80% is allowable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 32(1)(iia) of the Act, on the same windmill. Revenue opposed such claim on the ground that the assessee cannot be stated to be engaged in the business of manufacturing or production of any article or thing. Such a question needs consideration. 8. This Tax Appeal is ADMITTED for considering the following question of law; (1) Whether, in the facts and circumstances of the case, the Tribunal was right in law and in facts, confirming the order of the CIT Appeals, deleting the disallowance of the higher depreciation at the rate of 80 per cent, on the interest on term loan of ₹ 2,52,752/- and payment of ₹ 18,50,000/- to GEDA for land application fee and reimbursement of power evacuation. (2) Whether, in the facts and c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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