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TMI Blog2014 (12) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... t can be well imagined, would be highly specialized - the installation of windmill and the civil structure and the electric fittings are so closely interconnected and linked as to form the common plant - the legislature has provided for higher rate of depreciation of 80 per cent on renewable energy devises including windmill and any specially designed devise, which runs on windmill - The civil structure and the electric fitting, equipments are part and parcel of the windmill and cannot be separated from the same - The assessee's claim for higher depreciation on such investment was rightly allowed – Decided against revenue. Contribution to Group Gratuity Scheme disallowed – Held that:- Assessee has filed a Certificate of Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, depreciation was allowable to the assessee @ 15% and therefore, he disallowed the differential amount of depreciation of ₹ 23,81,194/- and added back to the income of the assessee. 4. On appeal, the CIT(A) observed that the expenditure incurred towards civil work, labour processing and development charges was intrinsically connected to the windmill. Therefore, the expenditure has to be considered as part of the cost of the windmill. He relied on the decision of the Mumbai Special Bench of the Tribunal in the case of DCIT vs. Datracraft India Ltd, 133 TTJ 377, where it was held that routers and switches, when used alongwith computer and when their functions are integrated with a computer, they are to be included in the block of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent on renewable energy devises including windmill and any specially designed devise, which runs on windmill. The civil structure and the electric fitting, equipments are part and parcel of the windmill and cannot be separated from the same. The assessee's claim for higher depreciation on such investment was, therefore, rightly allowed.". Respectfully following the above decision of the Hon'ble Gujarat High Court in the case of CIT vs. Parry Engineering and Electronics P. Ltd. (supra), we dismiss this ground of appeal of the Revenue. 7. Ground No.2 of the appeal reads as under:- 2. The Ld. Commissioner of Income-tax (A) has erred in law and on facts in deleting the addition of ₹ 3,23,640/- being expenses made on windmill. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted on a civil construction, equipped with electric fittings in order to transmit the electricity so generated. Such civil structure and electric fittings, therefore, it can be well imagined, would be highly specialized. Thus, such civil construction and electric fitting would have no use other than for the purpose of functioning of the windmill. On the other hand, it can be easily imagined that windmill cannot function without appropriate installation and electrification. In other words, the installation of windmill and the civil structure and the electric fittings are so closely interconnected and linked as to form the common plant. As already noted, the legislature has provided for higher rate of depreciation of 80 per cent on renewable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 29.01.2013, wherein it was held as under:- "5. We are of the opinion that the approach of both the authorities is perfectly justified. Windmill would require a scientifically designed machinery in order to harness the wind energy to the maximum potential. Such device has to be fitted and mounted on a civil construction, equipped with electric fittings in order to transmit the electricity so generated. Such civil structure and electric fittings, therefore, it can be well imagined, would be highly specialized. Thus, such civil construction and electric fitting would have no use other than for the purpose of functioning of the windmill. On the other hand, it can be easily imagined that windmill cannot function without appropriate in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us, the Authorized Representative of the assessee has filed a Certificate of Commissioner of Income-tax, Ahmedabad-III, Ahmedabad dated 04.10.2011 and submitted that the gratuity fund is now approved by the Commissioner of Income-tax and that the expenditure claimed was allowable deduction to the assessee. He also submitted that this certificate was not available with the assessee during the course of assessment proceedings before the Assessing Officer and during the course of appellate proceedings before the CIT(A). He, therefore, submitted that the matter should be restored back to the file of the Assessing Officer for allowing the claim of the assessee after verification of the approval certificate granted by the Commissioner of Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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