Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Cost of wind mill for allowing depreciation- a study

Income Tax - By: - CA DEV KUMAR KOTHARI - Dated:- 4-11-2016 - Links and references: ACIT Vs. Shri Rikhab Chand Jain and Vica-Versa 2016 (7) TMI 613 - ITAT KOLKATA and cases referred to therein: 1. M/s. Asian Handlooms Versus Deputy Commissioner of Income Tax Circle-II, Trichy. - 2012 (10) TMI 351 - ITAT CHENNAI 2. Assistant Commissioner of Income Tax (OSD) Versus Parry Engineering & Electronics P. Ltd. - 2012 (10) TMI 224 - ITAT, AHMEDABAD 3. CIT v. Karnataka Power Corporation (2000 (7) TMI .....

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 use the machinery. (andnot levies for running and use). c. Expenses for installation shall, for example, include: Foundation, base for putting the machine on ground, and walls Fittings Electrification required for running the machine, At least one set of spare parts which can be required for up-keep and maintenance at any time(however, if parts are of durable nature, then they need not be added in cost of machine but can properly be treated as stores and spares - an item of inventory). The h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hering trough process centre and fermentation centre in tea factory, power house in any industry. However, if the housing is simply to provide a space to work then such housing will be building and not part of plant or machinery. Windmill: Wind mill require strong foundation and open space around it. In case of windmill a major part of it is open on ground, some covered portion is required for safety and controlling devices administrative purposes etc. Therefore, cost of all such items as discus .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

extract groundwater. Wind Mills and Wind Turbines: Windmill and Wind Turbine are not the same thing. Actually both are unique and different in many ways. The windmill was made to help pump water and grind grain very similar to the water wheel. Wind turbine is used to produce energy for a clean and safe environment. Both the windmill and the wind turbine have their own features. The windmill is a much shorter machine then that of a Wind Turbine. The Wind Mill uses more blades to catch more wind .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

v:f eqn= prod @2 1 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

sum @0 1 0 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e of depreciation will be as applicable to particular type of plant and machinery and the use for which it is put to use. The benches of Tribunal has taken similar view and upheld inclusion of civil work, foundation, electrical work, payment to GEDA etc. to form part of cost of wind mills. Kolkata Tribunal has held that the learned AO was not right in disturbing written down value of asset brought forwarded. If he wanted to change the cost then he should make reassessment in earlier years. 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

followed and the amount of cost of land was nominal whereas cost of making land suitable for wind turbines was greater. In fact in the circumstances, it can be said that once wind turbine is installed, the cost of land really lost character of such cost because the plot of land has been dedicated for wind turbine, and till wind turbine exist, the land as such cannot be used for other purposes. Furthermore, after introduction of concept of block of assets , WDV b/f can be considered as final and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| 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