2016 (3) TMI 457

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..... e facts and in circumstances of the case and in law the ld CIT(A) has erred in allowing depreciation U/s 32(1)(iia) on wind mill even though the wind mill was not purchased in the context of core business of manufacturing of cables/conductors/parts and spare parts of machines." 2. The ld Assessing Officer observed that the assessee filed return on 27/11/2006 at NIL Income. In this case, scrutiny assessment was completed U/s 143(3) of the Income Tax Act, 1961 (in short the Act) on 29/12/2008 at the returned income i.e. NIL income. Thereafter, after recording the reasons U/s 147 of the Act, the case was reopened and notice U/s 148 was issued to the assessee and accordingly the case was scrutinized by the Assessing Officer. The assessee is en .....

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..... Assessing Officer further held that manufacture or produce is entirely different from generation. Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users. After considering the assessee's reply, he allowed the depreciation U/s 32(1)(iia) of the Act @ 15% on plant and machiner .....

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..... of cases on windmill and wherein it has allowed depreciation @ 80% on it. The ld CIT(A) also considered the decision cited by the assessee at the time of deciding the appeal in case the Texmo Precision Castings 321 ITR 481(Mad) wherein it has been held that in setting up of a new machinery or plant should have been acquired or installed after 31/3/2002 by the assessee, which should have any operation activity to the article or thing that was already been manufactured by the assessee. Therefore, the contention that the setting up on a windmill has nothing to do with the power industry, namely, manufacture of oil seeds, etc. is totally not germene to the specific provision contained in Section 32(1)(iia) of the Act. Therefore, he prayed to u .....

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