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TMI Blog2014 (12) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Rs. 23,81,194/- being disallowance of depreciation on windmill 3. The brief facts of the case are that the Assessing Officer observed that the assessee has claimed depreciation at the rate of 80% on Rs. 34,60,760/- which was civil work including foundation and allied works in respect of wind farm project consisting of one WTG. The Assessing Officer has deleted the depreciation by observing that on the civil work foundation, depreciation was allowable to the assessee @ 15% and therefore, he disallowed the differential amount of depreciation of Rs. 23,81,194/- and added back to the income of the assessee. 4. On appeal, the CIT(A) observed that the expenditure incurred towards civil work, labour processing and development charges was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purpose of functioning of the windmill. On the other hand, it can be easily imagined that windmill cannot function without appropriate installation and electrification. In other words, the installation of windmill and the civil structure and the electric fittings are so closely interconnected and linked as to form the common plant. As already noted, 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. The assessee's claim for higher depreciation on such investment was, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of CIT vs. Parry Engineering and Electronics P. Ltd., in Tax Appeal No.604 of 2012, order dated 29.01.2013, wherein it was held as under:- "5. We are of the opinion that the approach of both the authorities is perfectly justified. Windmill would require a scientifically designed machinery in order to harness the wind energy to the maximum potential. Such device has to be fitted and mounted on a civil construction, equipped with electric fittings in order to transmit the electricity so generated. Such civil structure and electric fittings, therefore, it can be well imagined, would be highly specialized. Thus, such civil construction and electric fitting would have no use other than for the purpose of functioning of the windmill. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. On appeal, the CIT(A) allowed the depreciation @ 80% which is the applicable depreciation rate on windmill, as the same was incurred on purchase of windmill. 15. Before us, both the parties before us agreed that the issue now stands covered by the decision of the Hon'ble Gujarat High Court in the case of CIT vs. Parry Engineering and Electronics P. Ltd., in Tax Appeal No.604 of 2012, order dated 29.01.2013, wherein it was held as under:- "5. We are of the opinion that the approach of both the authorities is perfectly justified. Windmill would require a scientifically designed machinery in order to harness the wind energy to the maximum potential. Such device has to be fitted and mounted on a civil construction, equipped with electric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;s contribution to Group Gratuity Scheme in a sum of Rs. 3,99,377. 17. The brief facts of the case are that the assessee claimed deduction for contribution to Group Gratuity Scheme which was disallowed by the Assessing Officer only on the ground that the gratuity fund was not approved as provided in Section 36(1)(v) of the Act. The same was confirmed in appeal by the CIT(A). 18. Before us, the Authorized Representative of the assessee has filed a Certificate of Commissioner of Income-tax, Ahmedabad-III, Ahmedabad dated 04.10.2011 and submitted that the gratuity fund is now approved by the Commissioner of Income-tax and that the expenditure claimed was allowable deduction to the assessee. He also submitted that this certificate was not ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e circumstances of the case, the CIT(A) erred in confirming the disallowance of Rs. 22,673 which was made by the Assessing Officer by invoking the provisions of section 40(a)(ia) insofar as the transportation charges paid by the assessee were wrongly treated by the Assessing Officer as liable for TDS. 22. At the time of hearing, the Authorized Representative of the assessee submitted that he is not pressing these grounds of crossobjection and also made an endorsement to this effect in the grounds of cross-objection appended to the memorandum of cross-objection filed in Form No.36A before us. Therefore, these grounds of cross-objection are dismissed for want of prosecution. 23. In the result, the appeal of the Revenue is dismissed and Cros ..... X X X X Extracts X X X X X X X X Extracts X X X X
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