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TMI Blog2014 (9) TMI 1115X X X X Extracts X X X X X X X X Extracts X X X X ..... ition to carrying on the business of gold mining is also in the business of generation of electricity through windmill as second line of business - Whether Section 32(1)(iia) includes the business of generation and distribution of power to avail the benefit of additional depreciation? Held that:- The material on record shows that the assessee is generating electricity through windmill as a second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 32(1)(iia) of the Income Tax Act, 1961, and the question as to whether clarificatory or not is kept open to be decided at proper time. X X X X Extracts X X X X X X X X Extracts X X X X ..... y and notice under Section 143(2) of the Income Tax Act, 1961, was issued on 13.08.2009. In the course of the scrutiny assessment, it was noticed by the Assessing Officer that the assessee on 23.01.2008, had erected and commissioned the windmill of power generation capacity of 4.5 MW. The cost of the windmill was ₹ 27,58,72,617/-. The assesse e apart from claiming normal rate of depreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Goods Act, 1930, and process of generation of electricity is akin to manufacture or production of an "article" or "thing". The power generated need not necessarily be used in the production of a ssessee's own products namely mining and extraction of gold. The use of electricity in the manufacturing activity of the core business of the assessee is not a precondition for the grant of additional dep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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