9911796707
TMI Blog2013 (1) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirming the addition on account of disallowance of depreciation of Rs. 9,57,518/- on wind mills. The addition is illegal, bad in law and without jurisdiction and hence the addition may be cancelled. b. Although the depreciation on the vehicle was allowed for the second half year in A.Y. 2006-07 @ 80% and no facts and circumstances had changed, the claim of rejection of depreciation @ 80% is wrongly confirmed and depreciation lesser than 80% is confirmed on that machinery for A.Y. 2008-09, hence the addition may be cancelled. 2. The issue in controversy is in the respect of the denial of the depreciation on the foundation of the wind mill installed by the assessee @ 80%. The facts which are revealed from the record are as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... installed in the preceding years i.e. the financial year 2005-06 as well as the wind mill installed in the financial year 2006-07 (AY 2007-08), the assessee has claimed the depreciation at 80% on the total cost which was not allowable and only the depreciation at 80% was allowable on the turbine and other devices. In the opinion of the A.O., the civil work vis-à-vis erection and commissioning work for installation of the wind mill is concerned, the depreciation @ 80% cannot be allowed on the said cost. The A.O. has also referred to the A.Y 2007-08 in which the expenditure on the civil work was treated under the block of "building" and depreciation on the same was allowed at 10%. Moreover, in the A.Y. 2007-08 as not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciation - Wind Mill No.1 2,94,73,512 19,18,088 55,65,782 3,69,57,382 Wind Mill No.2 (Half year) 71,77,500 4,67,100 13,55,400 90,00,000 Less:- Depreciation as allowed in Asst. Order for A.Y. 2007-08 Wind Mill No.1 2,35,78,810 1,91,809 8,34,867 2,46,07,486 Description Amount (Rs.) @ 80% @ 10% @ 15% Total Wind Mill No.2 (Half year) 28,71,000 23,355 1,01,655 29,96,010 Total WDV on 31.3.07 as per assessment order of A.Y. 2007-08 (Both for Wind Mill No.1 & 2) 1,02,01,202 21,70,024 59,84,660 1,83,55,886 Depreciation allowable for A.Y. 2008-09 81,60,962 2,17,002 8,97,699 92,75,663 Depreciation claimed by the assessee for A.Y. 2008-09 -- -- -- 1,02,33,181 Excess depr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.No. Date Nature of work Expenditure -Rs. 1. 30-03-2006 Towards supply and installation of HT electrical Yard with VCB, outdoor type CT & PT and HT Transmission Line from Windmill to Grid interconnection point including HT metering for 1.25 MW WINDMILL AT LOCATION No. K437 at above site address. 30,93,500/- 2. 30-03-2006 Labour charges towards final testing and commissioning for 1.25 MW windmill at Loc No. K437. 1,10,200/- S.No. Date Nature of work Expenditure -Rs. 3. 30-03-2006 Towards labour charges for work executed, for erection and installation of windmill consisting of : Unloading and safe keeping of material, Assembly, erection and installation of windmill tower and wind turbine generator for 1.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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