2011 (12) TMI 694 - AT - Income Tax

Summary

Issues involved: Appeal against the order of the Commissioner of Income Tax regarding depreciation claim on civil work, erection, and commissioning of windmill for Assessment Years 2004-05 to 2007-08.

ITA No. 6402/Mum/2010 (A.Y. 2004-05):
The Revenue challenged the deletion of disallowances on depreciation claim for civil work, erection, and commissioning of windmill. The Assessing Officer contended that depreciation should be allowed at 5% instead of 80%. The CIT(A) ruled in favor of the assessee based on a Tribunal decision regarding the eligibility of windmill components for higher depreciation. The Tribunal held that the basement for windmill installation is integral to the windmill itself, qualifying for 80% depreciation. The Revenue's appeal was dismissed as the Tribunal found no fault in the CIT(A)'s decision, upholding the higher depreciation claim.

ITA No. 6203 to 6205/Mum/2010 for A.Y. 2005-06 to 2007-08 & 6390/Mum/2010 for A.Y. 2006-07 & 6391 to 6392/Mum/2010 for A.Y. 2007-08 (By Revenue):
The grounds raised in these appeals mirror the issue in ITA No. 6402/Mum/2010. Following the precedent set in the previous case, where the Tribunal upheld the higher depreciation claim, the Revenue's appeals were dismissed. The Tribunal maintained consistency in allowing the depreciation claim for civil work, erection, and commissioning of windmills at 80% based on the integral nature of the components to the windmill structure.

In conclusion, all appeals by the Revenue were dismissed based on the consistent application of the Tribunal's decision regarding the eligibility of windmill components for higher depreciation rates.