TMI Blog2020 (9) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... and fixed the sum at ₹ 1,50,00,000/-. We find that there is no scientific basis for such fixation of the value of the second-hand windmill and such fixation has been done based on the personal opinion of the CIT[A]. Tribunal was fully justified in allowing the Revenue's appeal. With regard to the assessee's appeal, the Tribunal re-appreciated the factual position and in particular, noted that the manufacture of the windmill has certified that the windmill, which was sold to the assessee is no more in the market value and the technology has become obsolete. The Tribunal also considered as to what would be the effect of a report of the government valuer and noted Explanation III to Section 43(1), which requires the AO to arr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,92,820/-. The assessment was selected for scrutiny and notice under Section 143(2) of the Act was issued, after which, the assessment was completed by an order dated 09.11.2011. The assessment was reopened under Section 147 of the Act on the ground that there was an excess claim of depreciation in respect of purchase of a windmill. After affording an opportunity to the assessee, the assessment was completed under Section 143(3) read with Section 147 of the Act by an order dated 16.06.2014 disallowing the depreciation to the tune of ₹ 77,12,645/-. 4. Aggrieved by such order, the assessee filed appeal before the Commissioner of Income Tax [Appeals] 1, Coimbatore [CIT(A)] raising several contentions and laying stress upon the valua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .G.Usharani, Junior Standing Counsel for the respondent / revenue. We have narrated the factual background, those facts, which are relevant for the purpose of deciding these appeals. 7. The sheet anchor of the submissions of the learned counsel for the appellant is by contending that the Tribunal failed to take into consideration the material facts, namely, the valuation report given by an approved government valuer of the Canara Bank, who had valued the windmill at ₹ 2,95,00,000/- and ₹ 2,55,34,000/- respectively, which has not been considered by the Tribunal. 8. The Tribunal ought to have considered that the assessing officer has invoked Explanation 3 to Section 43(1) of the Act on mere surmises and conjunctures by treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re us, which were recorded above, the assessing officer discussed the aspect as to how the real worth of the asset has to be computed and in doing so, how the diminution of the economic value of the asset over its period of views has to be determined and applied. 13. After noting the technical details, the assessing officer observed that as far as taxation is considered under the Income Tax Act, the accelerated depreciation is the incentive to increase the installed capacity of windmill in the country and a person, who installs the windmill gets the benefit of such accelerated depreciation. 14. It was pointed out that the original owner, the assessee's vendor had claimed depreciation to the extent of ₹ 3 Crores within six ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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