TMI Blog2013 (1) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... Menon ORDER PER R.S. PADVEKAR:- This appeal is filed by the assessee challenging the impugned order of the Ld. CIT(A) Kolhapur dated 17.9.2011 for the assessment year 2008-09. The assessee has taken the following two effective grounds: a. In the view of facts circumstances, the Commissioner of Income Tax (Appeals) has erred both on facts as well as in law in confirming the addition on account of disallowance of depreciation of ₹ 9,57,518/- on wind mills. The addition is illegal, bad in law and without jurisdiction and hence the addition may be cancelled. b. Although the depreciation on the vehicle was allowed for the second half year in A.Y. 2006-07 @ 80% and no facts and circumstances had changed, the claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as claimed the depreciation on the whole cost of the wind mill at 80%. In the opinion of the Assessing Officer, the assessee has incurred the expenditure on foundation/civil work and erection and commissioning work. The assessee company has separately paid the said amounts on the bills raised by the supplier. In respect of the wind mill installed in the preceding years i.e. the financial year 2005-06 as well as the wind mill installed in the financial year 2006-07 (AY 2007-08), the assessee has claimed the depreciation at 80% on the total cost which was not allowable and only the depreciation at 80% was allowable on the turbine and other devices. In the opinion of the A.O., the civil work vis- -vis erection and commissioning work for in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... designed devices which run on Wind Mills . Working of the allowable/disallowable depreciation on Wind Mills on the basis of the disallowance made in A.Y. 2007-08 vis- -vis WDV carried forward in A.Y. 2008-09 is made as under:- Description Amount (Rs.) @ 80% @ 10% @ 15% Total Cost before depreciation Wind Mill No.1 2,94,73,512 19,18,088 55,65,782 3,69,57,382 Wind Mill No.2 (Half year) 71,77,500 4,67,100 13,55,400 90,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in assessee s own case for the A.Y. 2007-08, the issue has been considered by the Tribunal and has allowed the claim of assessees on depreciation at 80% on the foundation, erection and installation cost of the wind mill. The Ld. Counsel has filed the copy of the Tribunal order in assessee s own case for the A.Y. 2007-08. We have also heard the Ld. D.R. We find that the issue of the rate of depreciation applicable to the cost of foundation of erection and commissioning has already been considered by the Tribunal in assesee s own case for the A.Y. 2007-08. The Tribunal has held that foundation is the integral part of the wind mill and same is eligible for depreciation at the rate which is applicable to the wind mill. In the same way ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nloading and safe keeping of material, Assembly, erection and installation of windmill tower and wind turbine generator for 1.25 MW windmill at Location No K-437 at above site address. 14,32,600/- 4. 04-03-2006 Processing fees 2,58,970/- 5. 31-12-2005 MEDA processing and application fees 6,28,750/- 6. 31-03-2006 Contribution towards common power evacuation infrastructure facility 37,50,000/- 8. In respect of above six components of cost of windmill claimed by the assessee, the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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