Tribunal Grants Depreciation on Wind Turbines, Allows Full Foreign Travel & Vehicle Expenses for Assessee.

The Tribunal ruled in favor of the assessee on three key issues. It directed the allowance of depreciation on Wind Turbine Generating Sets (WTGS) after finding evidence of commissioning within the assessment year. It also ordered the full allowance of foreign travel expenses, disagreeing with earlier disallowances due to insufficient details. Lastly, the Tribunal upheld the allowance of vehicle expenses, supporting the CIT(A)'s decision based on established legal precedent. Consequently, the assessee's appeal was partly allowed, and the Revenue's appeal was dismissed.

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Issues:
1. Disallowance of depreciation on Wind Turbine Generating Sets (WTGS).
2. Disallowance of foreign travel expenses.
3. Deletion of addition made on account of disallowance of vehicle expenses.

Analysis:
1. The first issue pertains to the disallowance of depreciation on WTGS. The Assessing Officer disallowed the claim due to lack of details on installation and commercial operation. The CIT(A) upheld the disallowance as the WTGS was not connected to the grid during the relevant year. However, the Tribunal found evidence of commissioning on 27-3-1995 through various certificates and reports. Consequently, the Tribunal directed the Assessing Officer to allow the depreciation claim as the WTGS was commissioned within the assessment year.

2. The second issue involves disallowance of foreign travel expenses. The Assessing Officer requested specific details which were not provided by the assessee. Consequently, the expenses were deemed unrelated to the business. The CIT(A) upheld the disallowance partially, citing lack of commercial benefit from the trips. However, the Tribunal disagreed, stating that if expenses were incurred for business purposes, they should be allowed in full. The Tribunal directed the full allowance of the travelling expenses.

3. The final issue concerns the deletion of addition made on account of disallowance of vehicle expenses. The Assessing Officer disallowed the claim due to lack of specific details. The CIT(A) relied on a Gujarat High Court decision and allowed the claim as the directors were authorized to use the company's vehicles. The Tribunal upheld the CIT(A)'s decision, stating that it was in line with the precedent. As a result, the assessee's appeal was partly allowed, and the Revenue's appeal was dismissed.

In conclusion, the Tribunal ruled in favor of the assessee regarding the depreciation on WTGS and foreign travel expenses, while also upholding the allowance of vehicle expenses based on established legal precedent.

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