9911796707
TMI Blog2013 (5) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing plant in the petrochemicals area near Baroda and has also installed various windmills for generation of electricity. The assessee filed its return of income on 16.11.2007 declaring total income of Rs. 11,21,743/- under normal provisions of the Act. Thereafter, a revised return of income was filed on 24.03.2009 declaring a loss of Rs. 33,13,525/-. The return was selected for scrutiny and thereafter assessment was framed u/s.143(3) vide order dated 03.11.2009 and the loss returned by the assessee was accepted. Thereafter, the assessment was reopened and assessment was framed u/s.143(3) r.w.s. 147 of the Act, vide order dated 05.12.2011 and the total income was determined at Rs. 86,17,396/-. Aggrieved by the order of the A.O., t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for the purpose of wind mill / power generation undertaking. The contention of the assessee was not found acceptable to the A.O. as he was of view that wind electric generator does not result into manufacture or production of article or thing. Further, the wind electric generator was used to generate electricity and hence the claim of additional depreciation was not acceptable. He was further of the view that the assessee was covered by the Clause (i) of Section 32 of the Act and therefore, the assessee was not entitled to claim additional depreciation as the basic criteria to get additional depreciation under Clause iia of Section 32 was that the plant and machinery should be governed under clause ii of Section 32 of the Act. He, accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional depreciation is available to the assessee who is engaged in the business of manufacture and production of any article or thing irrespective of the fact that whether particular asset results into production or manufacture of article or thing or not. Ld. A.R. placed reliance upon the decision in case of CIT vs. VTM Ltd. 319 ITR 336 (Mad), CIT v. Texmo Precision Castings 321 ITR 481 (Mad) & CIT v. Hi Tech Arai Ltd. 321 ITR 477 (Mad). Ld. A.R. further submitted that if the assessee is engaged in manufacture and production of any article or thing and the conditions mentioned in proviso to Clause (iia) is fulfilled then the assessee would be eligible to claim additional depreciation. Clause (iia) does not require the asset to fall under Cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... existing four wind mills and thereby increased its power generation capacity by above 50%. It is true that the assessee is a company engaged in the business of manufacture of oil seeds, moulded rubber parts, reed value assemblies apart from generation of power. After the installation of the additional wind mills, both prior to as well as after the installation of the additional wind mills, the assessee was using wind energy for generating power for its capitative consumption apart from selling the surplus power generated to the Tamil Nadu Electricity Board. As far as application of Section 32(1)(iia) of the Act, is concerned, what is required to be satisfied in order to claim the additional depreciation is that the setting up of a new mach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thing. The said provision does not state that the setting up of a new machinery or plant, which was acquired and installed up to 31-3-2002 should have any operational connectivity to the article or thing that was already being manufactured by the assessee. Therefore, the contention that the setting up of a wind mill has nothing to do with the power industry, namely, manufacture of oil seeds etc. is totally not germane to the specific provision contained in section 32(1)(iia) of the Act." We find that the issue before us in the present appeal is directly covered in favour of the assessee by the aforesaid decisions of High Courts. Further, the Revenue has not brought on record before us any contrary decision of any other High Court or Jurisd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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