ITAT decision on windmill depreciation and 80IA deduction upheld

The ITAT Jodhpur upheld the Ld. CIT(A)'s decision regarding depreciation on foundation and civil work of a windmill, directing recalculated depreciation based on previous ITAT decisions. It also affirmed the allowance of deduction u/s 80IA of the Income Tax Act for the assessee, dismissing the department's appeal. The judgment was pronounced on 25th July 2014.

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Issues Involved:
1. Appeal against the order of Ld. CIT(A), Jodhpur regarding depreciation and deduction u/s 80IA of the Income Tax Act.

Detailed Analysis:

Issue 1: Depreciation on Foundation and Civil Work of Wind Mill
- The department filed an appeal against the order of Ld. CIT(A) regarding the allowance of depreciation on foundation and civil work of a windmill.
- The Assessing Officer disallowed excess depreciation claimed by the assessee based on discrepancies in the unabsorbed depreciation figures for previous assessment years.
- The CIT(A) directed the Assessing Officer to recalculate the depreciation based on a previous ITAT decision, which impacted the depreciation for the relevant years.
- The ITAT upheld the CIT(A)'s decision, stating that the recalculated depreciation was justified due to changes in the actual depreciation allowed.
- The ITAT found no error in the CIT(A)'s order on this issue.

Issue 2: Deduction u/s 80IA of the Income Tax Act
- The second issue concerned the deduction under section 80IA of the Income Tax Act claimed by the assessee.
- The Assessing Officer rejected the claim due to setting off unabsorbed depreciation against the profit of the eligible business, resulting in no profit left for the deduction.
- The CIT(A) allowed the claim, following a previous ITAT decision, which the department appealed.
- The ITAT upheld the CIT(A)'s decision, citing consistency with previous ITAT judgments and a Madras High Court decision supporting the eligibility of the assessee for the deduction.
- The ITAT dismissed the department's appeal on this issue, affirming the CIT(A)'s decision.

In conclusion, the ITAT Jodhpur dismissed the department's appeal against the Ld. CIT(A)'s order, upholding the allowance of depreciation and deduction u/s 80IA of the Income Tax Act in favor of the assessee. The judgment was pronounced on 25th July 2014.

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