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TMI Blog2014 (7) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... st Revenue. - ITA. No. 1483/Hyd/2013 - - - Dated:- 31-7-2014 - Shri B. Ramakotaiah And Shri Saktijit Dey,JJ. For the Petitioner : Mr. P. Somasekhar Reddy For the Respondent : None ORDER Per B. Ramakotaiah, A. M. This Revenue appeal is against the orders of Ld. CIT(A)-II, Hyderabad dated 27.08.2013 on the issue of allowing depreciation of Wind Mills at 80% on WDV method contesting that assessee has not exercised the option for claiming higher depreciation under Rule 5(1A). Revenue is also contesting the opinion of the CIT(A) in holding that reopening of assessment under section 147 was bad in law. 2. Briefly stated, assessee is engaged in the business of procuring/manufacturing/ trading of milk and milk produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciation schedule both as per the Companies Act and as per the Income-tax Act are very much available on assessment record and the depreciation was claimed at 80% for the purpose of income-tax on WDV. The Assessing Officer had called for the details of invoices for all the additions made to wind mills in A.Y. 2005-06 and also had asked for copy of certificate of claiming of windmill issued by the Tamil Nadu Electricity Board. On examination of all these bills/vouchers/invoices the depreciation was allowed at 80% in the original assessment order u/s. 143(3). Having examined the issue, having come to the conclusion on allowability of depreciation on windmills at 80%, issuing a notice u/s. 147 on the same issue amounts to change of opinion an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. In such circumstances, the reassessment proceedings are held invalid . 3.1. On the issue of merits of disallowance of depreciation, Ld. CIT(A) held as under: 8. Regarding Grounds No.5, 6 and 7, the facts are already discussed at para 4. Judicial precedents are discussed below. In exactly identical set of facts and circumstances In the following judicial precedents, the depreciation is held to be allowable at 80%. (i) CIT Vs. Jindal Steel Power Ltd. (2009) 180 Taxmann 543 (Punj. Har]. In this case the assessee had claimed depreciation on assets used for power generation of the basis of WDV in place of Straight Line Method. The Assessing Officer disallowed the claim on the ground that it had not opted for the same as per rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... class of assets mentioned therein. Whereas, in Appendix-l windmills are mentioned at part-A, Ill, 8. It is also to be mentioned that Appendix-lA is applicable with retrospective effect from 02.04.1997 whereas Appendix-l is applicable w.e.f. A.Y. 2006-07. Since, windmills are listed only in Appendix-1, it is not clear, where is the scope for exercising the option between Appendix-l Appendix-lA. In any case going by the merits of the case, based on the judicial precedents, the issue has to be decided in favour the appellant, both on merits of the case, as well as on technical grounds the appeal is allowed . 4. Revenue is in appeal and contesting both the issues. When the case was posted for hearing, none appeared on behalf of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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