Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News What's New Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

The DCIT-12 (2) , Mumbai Versus M/s. Swani Corporation and Vica-Versa

Depreciation on Wind Mills – WEG - Held that:- Whether the installed Wind Mill was new or old would not affect the claim of depreciation as per the provisions of the law. Further we find that the report of the DDIT, Unit-II Coimbatore is self speaking report wherein the Revenue authorities have made a detailed investigation in respect of the erection of Wind Mill Energy in the State of Tamil Nadu. We have no hesitation to hold that the assessee’s claim for purchasing a Wind Mill, erecting the sa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

land, assessee cannot be considered as owner of the WEG - Held that:- A perusal of the record shows that the said land has been taken on lease by M/s. Pioneer Windcon Pvt. Ltd., for a period of 30 years. We also find that The Karnataka Renewable Energy Development Ltd., has approved the power project and there is an agreement between the Department of Energy of Government of Karnataka and the assessee for the installation and supply of electricity to the Government. These facts conclusively est .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mentary evidence to suggest that the assessee has incurred cost outside the books of account. Merely on the basis of an unsubstantiated submission cannot lead to the addition u/s. 69C of the Act. The assessee has purchased the land for ₹ 58,500/- and therefore to this extent, the assessee is not entitled for the claim of depreciation. While deleting the addition of ₹ 2,41,500/-, we direct the AO to withdraw the depreciation on the amount of ₹ 58,500/- Decided partly in favour o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ersion>12.00 Normal 0 false false false

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

before />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

se Priority= 9 QFormat= true Name= heading 6 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ked= false Priority= 1 Name= Default Paragraph Font /> .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rid />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rity= 72 SemiHidden= false UnhideWhenUsed= false Name= Colorful List />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nhideWhenUsed= false QFormat= true Name= List Paragraph />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed= false Priority= 72 SemiHidden= false UnhideWhenUsed= false Name= Colorful List Accent 1 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2 Accent 2 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eWhenUsed= false Name= Light List Accent 3 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

riority= 70 SemiHidden= false UnhideWhenUsed= false Name= Dark List Accent 3 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

/>

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alse Name= Colorful Grid Accent 4 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

SemiHidden= false UnhideWhenUsed= false Name= Medium Grid 2 Accent 5 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Locked= false Priority= 63 SemiHidden= false UnhideWhenUsed= false Name= Medium Shading 1 Accent 6 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rful Shading Accent 6 /> .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing /> SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND RAM LAL NEGI, JUDICIAL MEMBER For The Assessee : Shri Nitin Waghmode For The Revenue : Shri Shekhar Gupta ORDER PER N.K. BILLAIYA, AM: ITA No. 4157/M/13 and C.O. No. 164/M/2014 are appeal and cross objection by the Revenue and the assessee against the very same order of the Ld. CIT(A)-24 Mumbai dated 28.2.2013 pertaining to A.Y. 2007-08. ITA No. 4158/M/2013 and C.O. No. 165/M/2014 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Revenue is same in all the assessment years under appeal though the quantum may defer. The Revenue is aggrieved by the decision of the Ld. CIT(A) in allowing depreciation on Wind Mills -WEG. 3. At the very outset, representatives of both the sides agreed that facts involved in the issues under consideration are identical for all the years therefore we heard the appeal of assessment year 2007-08 and on the basis of the facts of A.Y. 2007-08, these appeals are disposed of as under. 4. Facts o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to assessment year 2007-08. 4.1. While scrutinizing the return of income for A.Y. 2007-08, the Assessing Officer noticed that the WEG in Tamilnadu was supplied, erected and commissioned by M/s. Southern Wind Farms Ltd (SWFL), a Chennai based company. The cost of the WEG as per the commercial invoice is ₹ 90 lakhs. The WEG in the State of Karnataka was supplied erected and commissioned by M/s. Pioneer Windcon Ltd, another Chennai based company. The cost of the WEG is ₹ 113 lakhs. 4.2 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ls regarding the erection and commissioning of both the WEG. The assessee filed copies of commercial invoice No. SWL/WEG/055 DATED 31.02.2007 for the WEG in Tamil Nadu. It was explained that the amount of ₹ 90 lakhs paid to Southern Wind Farms Ltd. includes the erection and commissioning charges. The assessee also produced the Commercial Invoice No. PWPL/KA/02/06-07 dated 9.3.2007 in respect of WEG installed in Karnataka State. The assessee also supplied another commercial invoice No. ENC/ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

12.2009 had admitted that the said land was procured by Southern Wind Farms Ltd., and Pioneer Windcon Pvt. Ltd., and the assessee has paid ₹ 3 lakhs towards the cost of land. The AO was of the firm belief that the assessee has incurred unexplained expenditure in the purchase of land at ₹ 2,41,500/-. The AO added the same to the income of the assessee. The AO then proceeded by examining the cost of WEG and after elaborate discussion in his assessment order, the AO finally came to the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n the name of the assessee. The AO denied depreciation in respect of WEG at Tamil Nadu for want of documentary evidences. 4.5. In so far as the claim of depreciation on WEG erected in the State of Karnataka, the AO denied the claim of depreciation because the owner of the land was not the assessee. 5. Aggrieved by this, the assessee carried the matter before the Ld. CIT(A) and reiterated its claim of depreciation. The Ld. CIT(A) at para 4.3.4 at page-16 has observed that it is also seen from the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he AO to carry out further enquiries. After considering the enquiry report and the remand report and the submissions made by the assessee during the course of the assessment proceedings, the observations and the findings of the Ld. CIT(A) read as under: In this regard, the report of the DDIT is perused wherein it is mentioned that there is a wind mill and erected by M/s Swani Corporation and the same was commissioned during the F.Y. 2006-07. Further, DDIT, Unit-II, Coimbatore has also obtained t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ured before commissioning of the WEG that the WEG erected is a new machine and not a second hand machine by certifying the supporting documents. Similarly, letter dt. 21/02/2007 issued by Executive Engineer Operation and Maintenance Udumalpet to the Superintendent Engineer Udumalpet wherein it is also mentioned that M/s Swani Corporation, Mumbai have completed the 225 KV link line works for the energize ion of the WEG and further mentioned in paragraph No.3 of the above mentioned letter as under .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y the assessee during the financial year 2006-07 relevant to A.Y. 2007-05. 4.3.9 From the above findings, in my opinion, the assessee has satisfied all the conditions for claiming depreciation. In order to claim depreciation the assessee has to satisfy the conditions of ownership existence of machinery put to use and particularly in this case it should be a new machine. The provisions of sec. 32(1) read as under :- "32(1) In respect of depreciation of- (i) buildings/ machinery; plant or fur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he facts of the case, the Assessing Officer has nowhere disputed the payment made by the assessee to the supplier, the existence of the WEG and the operation of the wind mill. The above facts have also been ascertained during the remand proceedings by the DDIT, Investigation Unit-II, Coimbatore. The relevant portion of the report has already been reproduced in the earlier paragraphs. The Ld. CIT(A) finally being convinced with the claim of depreciation directed the AO to allow the same. 6. Aggri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

umentary evidences brought on record. In our understanding of the facts, the AO has declined the claim of depreciation for the following reasons: i) There is no agreement for erection and commissioning. ii) There is inconsistency in respect of the cost of land iii) No break-up of individual machineries have been given in respect of the WEG. iv) There are no identification No. of the wind mill v) The assessee has not proved that the Wind Mill has been installed was a new Wind Mill. 9.1. At the ve .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a gist of which is exhibited elsewhere and the report of DDIT (supra). We have no hesitation to hold that the assessee s claim for purchasing a Wind Mill, erecting the same and generating electricity are fully substantiated. Therefore, the assessee is entitled to the claim of depreciation as per the provisions of the law. We, accordingly decline to interfere with the findings of the Ld. CIT(A). 9.2. In so far as the claim of depreciation on the Wind Mill installed in the State of Karnataka is co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rnataka Renewable Energy Development Ltd., has approved the power project and there is an agreement between the Department of Energy of Government of Karnataka and the assessee for the installation and supply of electricity to the Government. These facts conclusively established the claim of the assessee for depreciation merely because the assessee is not the owner of the land and the land is a leasehold land would not itself disentitled the assessee with the claim of depreciation. The Ld. CIT(A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

paid ₹ 3 lakhs towards cost of land. On the basis of this admission, the AO made an addition of ₹ 2,41,500/- u/s. 69C of the Act as unexplained expenditure. 13. The assessee carried the matter before the Ld. CIT(A) but without any success. 14. The Ld. Counsel for the assessee stated that what the Authorised Representative wanted to convey was that the assessee has wrongly claimed the depreciation on the cost of land and in admitting so he has wrongly stated the cost of land as ₹ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tside the books of account. Merely on the basis of an unsubstantiated submission cannot lead to the addition u/s. 69C of the Act. The assessee has purchased the land for ₹ 58,500/- and therefore to this extent, the assessee is not entitled for the claim of depreciation. While deleting the addition of ₹ 2,41,500/-, we direct the AO to withdraw the depreciation on the amount of ₹ 58,500/-. Ground No. 1 is partly allowed. 17. Ground No. 2 relates to the claim of additional depreci .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

  ↓     Latest Happening     ↓  

Forum: 3B mistake

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Input tax credit

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

Forum: GST on Notional rent

Forum: GST ON SALES PROMOTION

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 – comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017 - Circular

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

News: Auction for Sale (Re-issue) of Government Stocks

Article: TDS APPLICABILITY ON GOVERNMENT CONTRACTS UNDER GST (Under Section 51 of the CGST Act, 2017)

News: Manmohan takes potshots at note ban, 'hasty' rollout of GST

News: GST on petrol, diesel requires wider discussion: Nitish

Article: WHEN CAN ONE TAKE ITC FOR RCM CASES?

Notification: TDS liability under Section 51 of CGST, 2017 come into force w.e.f. 18-9-2017 - Persons liable to deduct TDS from payment made or credited to the supplier of taxable goods or services specified

Notification: Central Goods and Services Tax (Seventh Amendment) Rules, 2017

Notification: Seeks to extend the last date for filing the return in FORM GSTR-3B for the months of August to December, 2017

Circular: Filing of Special Leave Petition against Orders of Hon'ble High Courts staying Collection of Tax under GST- reg.

Highlight: Exemption u/s 54F - LTCCG - once entire net consideration is invested, the absence of completion certificate cannot be a ground to deny the benefit of deduction.

Highlight: Deduction u/s 10B - initial AY - Mere authorization to enable the Assessee to import material or export produce in the earlier date would not ipso facto tantamount to commencement of substantial activity of ‘manufacture’/’production’.

Circular: Sub:- Procedure to be followed for Import under DEEC/EPCG Scheme- reg.



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version