2012 (3) TMI 693 - AT - Income Tax

Summary

Issues involved: Appeal against order allowing additional depreciation u/s 32(1)(iia) on windmill.

Summary:

Issue 1: Additional Depreciation Claim
- The Revenue appealed against the CIT(A)'s order allowing additional depreciation u/s 32(1)(iia) on windmill.
- The Assessing Officer disallowed the additional depreciation claimed by the assessee on the windmill.
- The CIT(A) allowed the appeal of the assessee citing relevant decisions of the High Court.
- The assessee, deriving income from various sources, filed a return declaring total income and claimed additional depreciation under section 32(1)(iia).
- The Tribunal noted that additional depreciation is allowable for new machinery or plant acquired after a specified date by an assessee engaged in manufacturing or production.
- As the assessee was not engaged in manufacturing or production activities, the Tribunal held that the assessee was not entitled to additional depreciation on the windmill.
- The Tribunal distinguished the case from previous decisions where the assessees were engaged in manufacturing or production activities.
- Consequently, the Tribunal set aside the CIT(A)'s order and restored that of the Assessing Officer, allowing the grounds of appeal of the Revenue.

Final Decision:
- The appeal of the Department was allowed.