2015 (2) TMI 501

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..... itled for higher depreciation on all the above items ignoring the facts that these components are installed at the end of the generator and such do not help in power generation by windmill. 2. Whether the Hon'ble ITAT was legally correct in holding that the assessee has sufficient funds available interest free to cover up the loans and advances and advances have been given to these family concerns out of the sale of land ignoring the facts that the money received from sale proceeds of land does not make the funds surplus till the liability in the form of term loan and unsecured loans, sundry creditors etc., are there. 3. Whether the Hon'ble ITAT was legally correct in holding that the addition made on the issue is estimated and ad .....

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..... f the assessee. The appeal of the assessee was also rejected. The Tribunal allowed the claim of the depreciation on these products holding that the electrical items and other components are part and parcel of the renewal energy devices. The Tribunal held that if the Assessing Officer can allow depreciation on the components, which are installed at the top of the tower designed especially for the windmill, there was no reason why the components installed at the lower end of the tower should not be considered as an essential part of the renewal energy device. The Tribunal further found that these items are essential and forms an integral part of the windmill project and that without these components, the windmill could not run and, therefore, .....

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..... cannot be separated from the same. The assessee's claim for higher depreciation on such investment was, therefore, rightly allowed." Similar view was held by the Rajasthan High Court in Commissioner of Income Tax Vs. K.K. Enterprises, (2014) 227 Taxman 181 and by the Punjab and Haryana High Court in Commissioner of Income Tax-I, Ludhiana Vs. M/s Eastman Impex. We are in entire agreement with the aforesaid decisions and, in view of the findings of fact given by the Tribunal, we are of the opinion that such civil construction and electric fittings, which have no use other than for the purpose of the functioning of the windmill would become closely interconnected and are part and parcel of the windmill and, therefore, liable for deprecia .....

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