TMI Blog2010 (12) TMI 1326X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was unjustly denied. 2. Short facts apropos are that assessee a company eng aged in hire purchase and leasing, had filed its return of income for the impugned assessment year declaring total income of ₹ 12,29,89,250/-. During the course of assessment proceedings it was found that the assessee had acquired two windmills from M/s Das Lagerway and as per the invoice the purchase price was ₹ 2,20,00,000/-. Assessee had claimed depreciation at 50% on the said sum stating that these windmills were put to use on 31- 03-1999. AO, in the first place, doubted the cost of the windmills shown as ₹ 2,20,00,000/- by the assessee. According to him, these windmills were to be dispatched to one company named RCI based on an agreemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... much eligible for depreciation. However, CIT(A) was not impressed. According to him, the claim of the assessee that 0.01 unit of electricity was generated, was effectively dislodged by the AO by his scientific working. Further according to the CIT(A), even if the asset was considered as kept ready for use, it would not be eligible for depreciation. Relying on the decision of Bombay High Court in the case of Dinesh Kumar Gulabchand Agarwal v. CIT (267 ITR 768), he declined to interfere with the order of the AO. 4. Now before us, the ld. AR strongly assailed the orders of the authorities below. It was submitted that certificate of electricity board placed at page 20 of the paper book, clearly proved that the windmills were connected to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is certificate issued, which runs as under: With reference to the above it is submitted that 3.00 MW Windfarm (250 KW x 12 No) of M/s RCI Power Private Limited, at Kadavakallu is connected to grid at 21 Hrs on 31-3-1999. The following are H.T. meter readings at the time of charging. S.No. Details (Import) Generation Mode (Export) Motor Mode 1) KWh 000000.76 000000.77 2) KVAh Parameter not Available in the Meter 3) RKVAh(G)] 000000.45 000000.47 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. (149 ITR 554), user of machinery for test production or experimental manufacture was still a user for the purpose of assessee s business. In our opinion, depreciation could not have been denied to the assessee. As for the reliance placed by the ld. CIT(A) on the decision of Bombay High Court in the case of Dinesh Kumar Gulabchand Agarwal (supra), the claim was for depreciation on a vehicle kept ready for use and not actually used. Here. On the other hand, the windmills were connected to the grid and as already noted by us, its operation atleast for a negligible part of the day could not be denied. Nevertheless we find from the order of the AO that not only hadhe denied the claim of depreciation, but also came to a conclusion that the qua ..... X X X X Extracts X X X X X X X X Extracts X X X X
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