Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s. Western Precicast Pvt. Ltd. Versus The Jt. Commissioner of Income Tax, Range – 2, Sangli and Vica-Versa and M/s. Western Precicast Pvt. Ltd. Versus The Dy. Commissioner of Income Tax,

Rate of depreciation to be applied on WDV of windmill installed by the assessee - assessee had claimed depreciation @ 80% on WDV of windmill, which was installed on 29.03.2006 - Held that:- Admittedly, such an asset was installed in earlier year, on which value of depreciation was claimed by the assessee, which in turn has been allowed by the Assessing Officer while completing assessment in the preceding year. The Assessing Officer is not empowered to disturb the WDV of an asset, which is the cl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g Officer in bifurcating the cost of windmill into cost of Wind Turbine, cost of erection and installation of windmills and civil construction work vis-à-vis Wind Turbine No.1, which was installed in assessment year 2006-07.

Windmill installed by the assessee in the year under appeal - As per the Assessing Officer, cost of Wind Turbine entitles the assessee to the depreciation @ 80%. However, the cost of electrical installation would attract depreciation @ 15% and the cost of civil 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

lled, which in turn ensures the functioning of windmill, forms part of windmill and is entitled to the depreciation @ 80%. Accordingly, we hold that the assessee is entitled to the claim of depreciation @ 80% on cost of windmill at ₹ 90 lakhs. - Decided in favour of assessee - ITA No.814/PN/2011, ITA No.890/PN/2011, ITA No.1495/PN/2011, ITA No.2484/PN/2012 - Dated:- 9-11-2015 - MS. SUSHMA CHOWLA, JM AND SHRI PRADIP KUMAR KEDIA, AM For The Assessee : Shri M.P. Machawe For The Department : S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

009-10 passed against respective orders under section 143(3) of the Act. 2. The appeal in ITA No.814/PN/2011 was earlier heard exparte, which in turn was recalled vide order passed by the Tribunal in MA No.62/PN/2014, dated 13.06.2014. The appeal of the Revenue in ITA No.890/PN/2011 was also adjudicated by the Tribunal vide order dated 31.12.2012. However, the assessee moved Miscellaneous Application before the Tribunal pressing that the appeal of the assessee and the appeal of Revenue are to be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l as raised in assessment year 2007-08. Hence, all the appeals relating to the same assessee were heard together and are being disposed of by this consolidated order for the sake of convenience. Reference is being to the facts and issue in ITA No.814/PN/2011 to adjudicate the issues. 4. First, we shall take up cross appeals filed by the assessee and the Revenue vide ITA Nos.814/PN/ 2011 and 890/PN/2011. 5. The assessee in ITA No. 814/PN/2011 has raised the following grounds of appeal :- 1) In th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cted by the Assessing Authority and depreciation lesser than 80% is allowed on that machinery for A.Y.2007-08, hence the addition may be cancelled. 3) In the view of facts & circumstances, the Hon. Commissioner of Income Tax, (Appeals) erred in bifurcating the cost of Windmill and treating cost of ₹ 1917969 (Windmill I) and ₹ 467100 (Windmill II) as building and hence the same should be treated as cost of Windmill. 4) In the view of facts & circumstances, the Hon. Commissione .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with eligible depreciation rate at 10%, and hence the same should be treated as cost of Windmill. 6) Your petitioner prays leave to add, alter, amend, withdraw and clarify the grounds of appeal as and when occasion demands. 7) Your petitioner prays leave to adduce such further evidence to substantiate his case as occasion may demand. 6. The Revenue in ITA No.890/PN/2011 has raised the following grounds of appeal :- 1. On the facts and in the circum stances of the case and in law, the CIT[A] erre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ly designed devices which run on wind mills and as such at location No.G P-31, as integral part of wind mill when these items are not wind mill or specifically designed devices which run on mill wind mills and as such said items would not classify for depreciation @ 80% as per the depreciation schedule. 2. On the facts and in the circum stances of the case and in law, the CIT[A] erred observing that labour work related to installation of one wind turbine generator for ₹ 10,55,056/- was req .....

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 decision is distinguishable on facts and does not considered the rate schedule of depreciation u/s 32C which provides for depreciation @ 80% only on wind mills and devices specially designed to run on wind mills. 4. On the facts and in the circumstances of the case and in law, the CIT[A] erred in allowing depreciation @ 80% on proportionate cost in MEDA charges of ₹ 6,28,750/- as the same does not form part of cost of windmill or any specifically device to run on windmill. 7. Briefly, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent year under appeal. Further, the assessee had purchased one windmill of ₹ 90 lakhs from M/s. Southern Wind Farm Ltd., during the year under consideration and had put the same for use on 24.02.2007. The depreciation was charged @ 80% for half year. The Commissioning certificate was issued by the prescribed authorities. The Assessing Officer during the course of assessment proceedings asked the assessee company to furnish the details of installation of such windmills along with copies of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vil construction work. However, in respect of bill for assessment year 2007-08, a composite bill of ₹ 90 lakhs was received by the assessee. The assessee was asked to furnish the details of various expenses incurred for acquiring the windmill for both the assessment years. In reply, the assessee submitted that there is no merit in segregation of windmill cost into cost of windmill, cost on civil work consisting of foundation / work for transformer and plinth and cost of erection and commis .....

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 Officer. It was further pointed out that the supplier in assessment year 2007-08 had charged consolidated price of ₹ 90 lakhs without giving any break-up and thereafter, no division of cost on any assumption should be made. The Assessing Officer rejecting the submissions of assessee noted that from the details filed relating to assessment year 2006-07, the expenditure could be bifurcated into the cost of Wind Turbine and expenditure on foundation and civil work and also erection and 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

allowed @ 10%. The Assessing Officer thus, re-computed the depreciation to be allowed to the assessee in respect of Wind Turbine Generator No.1 purchased in assessment year 2006-07 and Wind Turbine Generator No.2 purchased in assessment year 2007-08. The Assessing Officer allowed depreciation of ₹ 2,46,05,486/- in respect of Wind Turbine Generator No.1 and in respect of Wind Turbine Generator No.2, the Assessing Officer allowed depre ciation of ₹ 29,96,010/- i.e. total of ₹ 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

relating to erection and commissioning of windmills, the CIT(A) allowed partial relief of ₹ 25,54,815/- relating to both windmills, on such relief, the Revenue is in appeal before us. The assessee is in appeal on two accounts i.e. in respect of the windmill installed in assessment year 2006-07, the assessee is entitled to the balance claim of depreciation @ 80% on the WDV. The assessee is further aggrieved by the order of CIT(A) in bifurcating the cost of both windmills and treating part 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

77; 90 lakhs, the learned Authorized Representative for the assessee drew our attention to the copy of bill placed at page 29 of the Paper Book and pointed out that the same was a consolidated bill issued by the supplier. He further argued that the Assessing Officer had bifurcated the figures by comparing the same with the bill of bigger windmill installed in the preceding year, where separate bills were given by the supplier. The learned Authorized Representative for the assessee stressed that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t the Department was aggrieved by the order of CIT(A) in allowing 80% depreciation on electrical items, on which depreciation was to be allowed only to the extent of 15%. 11. We have heard the rival contentions and perused the record. The first issue arising in the present appeal is in respect of rate of depreciation to be applied on WDV of windmill installed by the assessee in assessment year 2006-07. Admittedly, the first major windmill was installed by the assessee in the preceding year, in w .....

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 in the hands of assessee. During the year under consideration i.e. in the next succeeding year, the assessee had claimed depreciation @ 80% on WDV of windmill, which was installed on 29.03.2006. The first issue which has to be addressed is whether while completing the assessment in succeeding year, is the Assessing Officer authorized or empowered to disturb the WDV of an asset, which is brought forward from the preceding year. Admittedly, such an asset was installed in earlier year, on which .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ce Investments (P.) Ltd. Vs. CIT (supra). However, in the absence of any fresh evidence being brought on record by the Revenue authorities, the Assessing Officer cannot re-work the depreciation allowable on WDV of an asset. Thus, we hold that the Assessing Officer is not empowered to disturb the claim of depreciation on WDV of an asset, which was installed in the earlier years. We find no merit in the order of Assessing Officer in bifurcating the cost of windmill into cost of Wind Turbine, cost .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cate between cost of windmill and the allied expenses to be incurred for the erection and installation of the windmill and other construction thereof. In the absence of these requisite details being available on record, we find no merit in the order of Assessing Officer in bifurcating the cost of windmill into different heads of expenses, against which the Assessing Officer held that the assessee was entitled to the claim of depreciation at different rates. As per the Assessing Officer, cost of .....

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 as an integral part of cost of windmill, which in turn is entitled to higher rate of depreciation @ 80%. Similarly, various electrical items installed, which in turn ensures the functioning of windmill, forms part of windmill and is entitled to the depreciation @ 80%. Accordingly, we hold that the assessee is entitled to the claim of depreciation @ 80% on cost of windmill at ₹ 90 lakhs. The grounds of appeal raised by the assessee are thus, allowed. The grounds of appeal raised by the R .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Notification: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017

Forum: Trans1 return

News: Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified

Forum: Credit on Repair of Company Car & Its Insurance

Circular: Promote the officers of the Indian Revenue Service (Customs and Central Excise) to the grade of Principal commissioner of customs, GST & CX

Circular: Allocate the charges amongst the Members of the Central Board of Excise and Customs

Circular: Strategy for audits in 2017-18 consequent to GST - Audit by Central Excise and service Department to continue for the accounting year 2016-17 and for the past period

Circular: Appoint the IRS (C&CE) officers as Principal Commissioner (Revision Application) and ex-officio Additional Secretary

Circular: Time limit for filing intimation for composition levy under Rule 3(1) of the CGST Rules, 2017 extended to 16-8-2017

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

Circular: C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime

Circular: List of Reduced Tax Liabilities under GST regime in comparison to present combined Indirect Tax rates

Circular: Works Contract for construction of Flats, Complex — Builders to pass on GST benefit to buyer otherwise anti-profiteering provisions of Section 171 of GST Act to apply

Circular: Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports – Regarding.

Circular: Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding

Forum: Duty Drawback & Input Credit - under GST

News: RBI Reference Rate for US $

Highlight: Addition u/s 23(1)(a) - deemed rent - once the property is let out and at any point of time this remained vacant during the same cannot be brought to tax under the head House properties income.

News: Haryana constitutes screening committee on anti-profiteering

Highlight: Valuation of imported goods - it is necessary to re-examine the matter of both license agreement as well as supply contract simultaneously, to see if the enhanced royalty was in the guise of adjustment of the price of components.

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

Highlight: Cenvat credit availed on Club Membership for the Director is not admissible as it cannot be said to be remotely connected with the activity of manufacture

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Jaitley asks biz not to wait till last day to file GST returns

Circular: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg.

Article: 20 Things You must know about E Way Bills in GST Law

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

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)

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



|| 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