Court rules in favor of assessee in Tax Case on windmill depreciation claim under Rule 5(1A) proviso.

The Court ruled in favor of the assessee in a Tax Case (Appeal) concerning the claim of depreciation on windmills. The Court held that if the assessee had exercised the option in accordance with the second proviso to Rule 5(1A) at the time of filing the return of income, no separate intimation was required. The decision was based on a precedent from the Bombay High Court. As a result, the substantial questions of law raised by the Revenue were resolved in favor of the assessee, leading to the dismissal of the appeal with no costs incurred.

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Issues involved:
Claim of depreciation on windmills contrary to Rule 5(1A) Appendix 1A of the Income Tax Rules.

In this Tax Case (Appeal), the main issue was the claim of depreciation by the assessee on the installation of windmills, which the Revenue contended was against Rule 5(1A) Appendix 1A of the Income Tax Rules. The Revenue argued that the issue was already settled by a previous decision of the Court in T.C.(A) Nos.330 of 2013. The Court referred to a decision of the Bombay High Court and held that if the assessee had exercised the option in accordance with the second proviso to Rule 5(1A) at the time of filing the return of income, no separate intimation was required. The Court agreed with the Tribunal's reasoning and ruled in favor of the assessee based on the Bombay High Court's decision. Consequently, the substantial questions of law raised by the Revenue were answered in favor of the assessee, leading to the dismissal of the Tax Case (Appeal) with no costs incurred.

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