TMI Blog2014 (4) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... impetus to the view that generation of electricity is a manufacturing process and qualifies for the benefits under section 32(1)(iia). See ACIT Vs. M.Satishkumar reported as (2012 (11) TMI 215 - ITAT CHENNAI). Rate of depreciation on civil and electrical fittings - Held that:- We find that this issue has also been dealt with in the case of R.Ramanathan Vs. DCIT (2011 (8) TMI 1143 - ITAT CHENNAI), wherein the Tribunal has held that wind mills are fabricated/erected on a specialized foundation and the civil and electrical components of the structure are indivisible parts of the wind mill parts as a whole. As such, the civil and electrical components of the wind mill structure cannot be dis- associated from the sole and substance of the wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer dis-allowed additional depreciation of 20% claimed by the assessee on wind mill. The Assessing Officer further restricted the rate of depreciation on civil works on electrical fittings to 10% as against 80% claimed by the assessee. 3. Similarly, for the AY.2008-09, the assessee filed return of income on 18-09-2008 declaring NIL income and agricultural income of `2,50,000/-. The case of the assessee was selected for scrutiny. During assessment proceedings, the Assessing Officer restricted the depreciation on civil works and electrical works to 10% as against 80% claimed by the assessee. Aggrieved against the assessment order for the respective AYs, the assessee filed appeals before the CIT(Appeals). The CIT(Appeals) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case has held as under: 9. We have heard the submissions made by the respective parties and have also examined the judgements orders relied on by the A.R. of the assessee. A perusal of the judgements clearly show that generation of electricity is akin to manufacturing of a new product. In the instant case, electricity which may not be seen with the eyes, however, its effect can be seen and felt. The electricity can be transmitted, transferred, delivered, stored, possessed etc. The Hon ble Supreme Court in the case of the CST Vs. Madhya Pradesh Electricity Board (supra) has held that electricity falls within the definition of goods under the provisions of Sale of Goods Act, 1930. The Delhi Bench of the Tribunal in the case of NTPC Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and the civil and electrical components of the structure are indivisible parts of the wind mill parts as a whole. As such, the civil and electrical components of the wind mill structure cannot be dis- associated from the sole and substance of the wind mill and cannot be given a separate treatment for depreciation. The Tribunal placed reliance on the decision of M/s.Asian Handlooms Vs. DCIT (ITA No.2291/Mds/2008) decided on 20-11-2009 and directed the assessing authority to grant depreciation @ 80% on the whole cost of wind mill including civil and electrical components. In view of the above decisions of the Tribunal, we do not find any merit in the submissions of the ld.DR. Accordingly, this ground of appeal of the Revenue is also dism ..... X X X X Extracts X X X X X X X X Extracts X X X X
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