2011 (6) TMI 803 - AT - Income Tax

Summary

Issues involved: Appeal against order of ld. CIT(A) regarding depreciation on windmill foundation, infrastructural fee, and transformer as integral part of windmill.

Depreciation on Windmill Foundation:
- The Revenue appealed against the order allowing depreciation on windmill foundation.
- The ld. CIT(A) directed treating windmill foundation as part of windmill for depreciation based on precedent.
- Tribunal confirmed ld. CIT(A)'s decision as no contrary evidence was presented.
- Revenue's appeal dismissed for both years under consideration.

Depreciation on Infrastructural Fee:
- Appeal against ld. CIT(A)'s decision allowing depreciation on infrastructural fee.
- Tribunal upheld ld. CIT(A)'s decision based on precedent regarding capitalization of installation cost.
- No contrary decision presented, thus confirming ld. CIT(A)'s order.
- Revenue's appeal dismissed.

Transformer as Integral Part of Windmill:
- Appeal against ld. CIT(A)'s ruling considering transformer as integral part of windmill.
- Ld. CIT(A) supported the claim based on the function of the transformer in power transmission.
- Tribunal upheld ld. CIT(A)'s decision citing precedent regarding transformer's role in power generation.
- No opposing decision cited, leading to confirmation of ld. CIT(A)'s order.
- Revenue's appeal dismissed for both years.

Cross Objections by Assessee:
- Assessee's cross objections supported ld. CIT(A)'s decision.
- Since no grievance existed, cross objections were deemed infructuous and dismissed.
- Both Revenue's appeals and Assessee's cross objections were dismissed.