TMI Blog2013 (5) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... at 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. - ITA No. 409/Ahd/2013 - - - Dated:- 10-5-2013 - Shri G.C.Gupta, Vice President and Shri Anil Chaturvedi, Accountant Member By Appellant Shri T. Sankar, Sr. D.R. By Respondent Shri Sanjay R. Shah, A.R. O R D E R PER : Anil Chaturvedi, Accountant Member This appeal is filed by the Revenue against the order of ld. CIT(A)-I, Baroda, dated 12.11.2011 for the assessment year 2007-08. 2. The facts as culled out from the orders are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thing, but it is used to generate electricity and that the basic criteria to get additional depreciation under clause (iia) of section 32 of the Act is that the plant and machinery should be covered under clause (ii) of section 32 of the Act, whereas wind electric generator is classified as per clause (i) of section 32 of the Act. 4. The A.O. noticed that the assessee has claimed additional depreciation on wind electric generator amounting to ₹ 1,17,98,030/-. The assessee was asked to justify its claim. The assessee, inter alia, submitted that the additional depreciation is available to the assessee who is engaged in manufacture and production of any article or thing subject to conditions mentioned in the proviso to Clause iia of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the aforesaid order of CIT(A), the Revenue is now in appeal before us. 7. Before us, the ld. Sr. D.R. relied upon the order of the A.O., on the other hand, ld. A.R. submitted that the benefit of additional depreciation is available to assessee engaged in the business of manufacture and production of any article or thing. The assessee is engaged in the business of manufacturing of various speciality chemicals which finds application in industries like pharmaceuticals, agro-chemicals etc. The assessee also entered into generation of wind power and has installed wind electric generators in the States of Gujarat and Maharashtra. Thus, the assessee fulfills the criteria of being an assessee engaged in the business of manufacture or produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f manufacturing of speciality chemicals and also generation of wind power. The date of installation of wind power generator is not in dispute. The A.O. has disallowed the claim of additional depreciation for the reason that the wind power generator does not result into the manufacture or production of article or thing. Before us, the assessee relied upon the decision of CIT v. Hi Tech Arai Ltd. (supra) and also placed on record the copy of the decision. On perusal of the aforesaid decision, we find that the question before the Hon ble High Court was whether the assessee was entitled to additional depreciation on purchase of wind mills even though the main business of the assessee was not producing or generating of electricity. The Hon ble M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds etc. is totally not germane to the specific provision contained in Section 32(1)(iia) of the Act. In the case of CIT vs. VTM Ltd.(supra), one of the issue before Hon ble Madras High Court was whether the assessee what right in claiming additional depreciation u/s.32(iia) Hon ble Madras High Court has decided the issue in assessee s favour by holding as under: 5. In the case on hand, the assessee is stated to have set up a wind mill at a cost of ₹ 5,85,60,000. It is true that the assessee is a company engaged in the business of manufacture of textile goods. 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
