9911796707
TMI Blog2014 (12) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... eals). 2. The assessee is a firm engaged in manufacture and export of textile goods and generation of power using wind energy. The assessee in its return of income for the assessment year 2006-2007 claimed additional depreciation on windmill to the tune of C35,97,603/. The Assessing Officer vide assessment order dated 13.12.2010 rejected the claim of additional deprecation u/s.32(1)(iia) of the Income Tax Act, 1961 (herein after referred to as, 'the Act'). Aggrieved by the assessment order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) by following the decisions of Jurisdictional High Court in the case of CIT vs . M/s . VTM Limited reported as 319 ITR 336 (Mad) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The learned Authorised Representative of the assessee prayed for dismissing the appeal of the Revenue. 5. Both sides heard. Orders of the authorities below perused. The only issue in the appeal is whether the assessee is eligible for claiming additional deprecation on windmill. We find that the issue in appeal is identical to the one adjudicated by the co-ordinate Bench of the Tribunal in the case of ER.R.Ramasamy(supra). The co-ordinate Bench of the Tribunal in the said case placed reliance on the decision of the Tribunal in the case of ACIT vs. Satishkumar reported as 19 ITR (Trib) 646 (Chennai) to say that generation of electricity is akin to manufacturing of a new product. The relevant extract of the order of the Tribunal is reprod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the considered opinion that generation of electricity is a manufacturing activity. The assessee is involved in the manufacturing activity and fulfills the conditions as laid down under section 32(1)(iia). The Government vide Finance Act, 2012 has amended the provisions of section 32(1)(iia) to include the business of generation or generation and distribution of power, eligible for benefit under section 32(1)(iia). Although the said amendment is with effect from 1.4.2013 but it gives impetus to the view that generation of electricity is a manufacturing process and qualifies for the benefits under section 32(1)(iia). In view of the above, the order of the CIT(A) is upheld and the appeal of the Revenue is dismissed being devoid of merit". ..... X X X X Extracts X X X X X X X X Extracts X X X X
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