2009 (9) TMI 60

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..... n of the law - the contention that the setting up of a wind mill has nothing to do with the power industry, namely, manufacture of oil seeds etc. is totally not germane to the specific provision contained in Section 32(1)(iia) of the Act. – Additional depreciation allowed. - 670 and 671 of 2009 - - - Dated:- 1-9-2009 - F. M. IRBRAHIM KALIFULLA and MRS. JUSTICE R. BANUMATHI, JJ. Mr. T. Ravikumar Standing Counsel for Income-tax, for the appellant. JUDGMENT The Judgment of the Court was delivered by F. M. IBRAHIM KALIFULLA, J. - The Revenue has come forward with the above appeals raising the following substantial questions of law: "1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Trib .....

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..... contended that the additional depreciation was claimed on the setting up of wind mills for generation of power and inasmuch as the assessee is only engaged in the manufacture of oil seeds etc., the setting up of a wind mill has absolutely no connection for the manufacture of oil seeds, which is a power industry and therefore, the assessee was not entitled to claim the additional depreciation as allowed under Section 32(1)(iia) of the Act. 3. We are not in a position to appreciate either of the contentions of the learned counsel for the petitioner. As far as the first contention is concerned, when the Tribunal by the impugned order has applied Section 32(1)(iia) of the Act, to the facts involved in the case of the assessee and has found .....

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..... industrial undertaking existing before the 1st day of April 2002, during any previous year in which it achieves the substantial expansion by way of increase in installed capacity by not less than ten per cent." 5. In the case on hand, the assessee is stated to have set up two wind mills in addition to the already existing four wind mills and thereby increased its power generation capacity by above 50%. It is true that the assessee is a company engaged in the business of manufacture of oil seeds, moulded rubber parts, reed value assemblies apart from generation of power. After the installation of the additional wind mills, both prior to as well as after the installation of the additional wind mills, the assessee was using wind energy fo .....

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