TMI Blog2015 (3) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... l expert i.e. M/s Servel Krishna Engineers Pvt. who opined that wind electric generator is an integral part of the wind mill and it is specifically designed, so that they can convert mechanical energy into electrical energy when installed in a wind mill. Without the generator unit, the wind mill cannot achieve the desired purpose. Thus it has to be accepted that wind mill generator is nothing but wind mill equipment on which depreciation is allowable @ 100% as per the statutory provision. - Decided in favour of assessee. - ITA Nos. 252 & 253/Hyd/2013 - - - Dated:- 5-12-2014 - Shri B. Ramakotaiah And Shri Saktijit Dey,JJ. For the Petitioner : Shri Rajat Mitra For the Respondent : Shri T. Chaitanya Kumar ORDER Per S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not be disallowed. Though assessee explained that wind mill generators which are renewable energy devices on which depreciation is allowable at 100%, but AO rejecting the claim of assessee concluded that wind electric generators being electrical equipments, depreciation, is allowable at 25% and accordingly passed the assessment order by disallowing excess depreciation claimed by assessee. Being aggrieved of the assessment order so passed assessee preferred appeal before ld. CIT(A). 4. In course of hearing of appeal before ld. CIT(A), assessee submitted that it is having one wind mill power project situated at Chitradurga in the state of Karnataka, which was conceived by M/s Encon Services Ltd., Chennai at a cost of ₹ 14,73,7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al without the wind electric generators. The higher rate of depreciation is given to encourage more wind power projects. Therefore, after considering the aforesaid facts of the case and case laws, I hold that the electric wind generators are eligible for higher rate of depreciation. Further, it is held that, the depreciation for the year 2003-04 should also be allowed at 100%. Accordingly, I direct the AO to allow the same. Thus, this ground of appeal is allowed. 5. The learned DR submitted before us, before AO, assessee did not establish the fact that the equipments on which 100% depreciation was claimed are part of wind mill, hence, AO treated the wind mill electric generators as electrical equipments and allowed depreciation at the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electric generators 20.03.2002 10,61,10,000 4. Registration front end fee to IREDA 31.03.2002 13,70,000 Total 14,73,71,680 8. On perusal of the invoices raised towards sale of wind mill equipment and erection and commissioning of the same, it is to be noted that the price has been charged for supply, erection and commissioning of wind electrical generators. The seller of the wind mill equipment has also issued a certificate, a copy of which is at page 38 of the paper book, wherein it is clarified that the equipment supplied by them to assessee is not just wind electric generator but the complete wind mill unit consisting of the following com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ler of the wind mill equipment also clearly demonstrates that the generator is an integral part of the windmill unit. Therefore, considering the aforesaid factual aspect it has to be accepted that wind mill generator is nothing but wind mill equipment on which depreciation is allowable @ 100% as per the statutory provision. On a perusal of the assessment order, it is clear that AO without controverting the evidences and materials brought on record by assessee, has arbitrarily come to a conclusion that wind electric generators is an electric equipment eligible for depreciation @ 25%. Even at the time of hearing before us, ld. DR has not brought any contrary evidence to conclusively prove the fact that the equipment on which assessee claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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