TMI Blog2021 (3) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of power? - HELD THAT:- Though the term 'Capital Consumption' is used by the assessee, it does not mean that whatever electricity energy generated by the assessee with their wind mills is directly fed into their system for being used for manufacture of Pet Bottles. If this is to be the opinion, then it will fall fowl of the regulations under which wind energy is being regulated in the State. The assessee, who owns the wind mill, if engaged in the generation of power, is mandated to feed the same into the grid of the Tamilnadu Electricity Board and pursuant to the agreement between the assessee and the Board, a grid is given to the generator. Therefore, going with scheme of things, it is undoubtedly clear that the assessee is int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0A of the Income Tax Act, 1961 ('the Act' for brevity) is directed against the order dated 18.04.2017 made in ITA.No.2604/Mds/2016 passed by the Income Tax Appellate Tribunal, Madras 'B' Bench ('the Tribunal' for brevity) for assessment year 2012-13. 2. The Revenue has raised the following substantial questions of law for consideration: 1. Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT is correct in law in allowing additional depreciation on windmill of ₹ 3,45,52,281/- u/s 32(1)(ii)(a) of the Income Tax Act? 2. Whether on the facts and circumstances of the case, the ITAT is correct in law in allowing the additional depreciation under Section 32(1)(ii)(a) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... talled wind mills is to enable them to captively consume the energy, which is produced. Although the wind mills are not situated in the same premises where the manufacture of Pet Bottles is being carried on, the electrical energy generation by the wind mills owned by the assessee are taken to the Tamilnadu Electricity Board and the energy is credited to the power consumption of the factory manufacturing Pet Bottles. Therefore, it is submitted that generation of electricity by the wind mills is inextricably connected to the business of the assessee. The assessee enclosed the month wise wind energy generated by the wind mills and the details of units taken for captive consumption. The assessee placed reliance on the decision in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the opinion, then it will fall fowl of the regulations under which wind energy is being regulated in the State. The assessee, who owns the wind mill, if engaged in the generation of power, is mandated to feed the same into the grid of the Tamilnadu Electricity Board and pursuant to the agreement between the assessee and the Board, a grid is given to the generator. Therefore, going with scheme of things, it is undoubtedly clear that the assessee is into the generation of power, which is being fed into the grid of the Tamilnadu Electricity Board to be distributed. 11. Identical issues was considered by this Court in the case of Commissioner of Income Tax, Madurai Vs. VTM Ltd. [(2009) 319 ITR 336] . The operative portion of the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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