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TMI Blog2022 (5) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... e the assessment order and remanded the matter to the assessing officer for fresh consideration. Whereas, the Tribunal erred in setting aside the said order of the appellate authority, by order dated 30.03.2012 and hence, the same is liable to be set aside and is accordingly, set aside. Consequently, the matter is remanded to the assessing officer to recompute the depreciation allowable after duly allowing the claim made by the appellant for additional depreciation, in addition to the depreciation already allowed. Such order be passed by the assessing officer, on merits and in accordance with law, after providing an opportunity of personal hearing to the appellant, within a period of six weeks from the date of receipt of a copy of this j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciation allowable, after duly allowing the claim made by the appellant for additional depreciation, in addition to the depreciation already allowed. Aggrieved against the same, the respondent/Revenue filed an appeal before the Income Tax Appellate Tribunal, which allowed the said appeal, vide order dated 30.03.2012, which is impugned in this tax case appeal. 3.On 03.07.2012, this court admitted the aforesaid appeal on the following substantial questions of law: (i) Whether the Appellate Tribunal is correct in law in sustaining the disallowance of the claim of additional depreciation u/s.32(1)(iia) of the Act relating to the windmill installed even though the generation of electricity should be equated to the term manufacturing or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... depreciation. As per the judicial pronouncement held in CIT Vs. VTM Limited (2010) 319 ITR 336 (Mad) it was not necessary that the machinery should become operational for the products already manufactured to claim the benefit of additional depreciation. Similarly, the claim of additional depreciation cannot be denied to the assessee that the purchase of wind mill did not relate to its existing business as stipulated in CIT Vs. Hi Tech Arai Ltd (2010) 321 ITR 477 (Mad.) and CIT Vs. Texmo Precision Castings (2010) 321 ITR (Mad) 481. As the Authorised Representative of the appellant has stated in his grounds of appeal that the department's appeal against the ITAT 'B' Bench order dated 12.12.2008 in ITA No.325 1793/Mds/2007 has u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Income Tax Act, held as follows: As far as application of section 32(1)(iia) of the Act is concerned, what is required to be satisfied in order to claim the additional depreciation is that the setting up of a new machinery or plant should have been acquired and installed after March 31, 2002 by an assessee, who was already engaged in the business of manufacture or production of any article or thing. The said provision does not state that the setting up of a new machinery or plant, which was acquired and installed up to March 31, 2002, should have any operational connectivity to the article or thing that was already being manufactured by the assessee. Therefore, the contention that the setting up of a wind mill has nothing to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction of textiles and its export has nothing to do with the generation of power for the purpose of considering additional depreciation. Further as rightly held by the Tribunal, the Revenue has not brought in any new or contra material to differ from the view of this Court in the decision reported in [2010] 321 ITR 477 (Mad) (COMMISSIONER OF INCOME-TAX v. HI TECH ARAI LTD.). 8.It is settled law that for the purpose of claiming additional depreciation for manufacture or production of new item under section 32(1)(iia), the basic requirement is that it should be acquired or installed after 31.03.2002. Admittedly, the appellant acquired the windmill after 31.03.2002. Taking note of the same and also in the light of the decision cited supra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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