Tribunal upholds CIT(A)'s decision on 100% depreciation for wind mill equipment

The tribunal upheld the CIT(A)'s decision, dismissing the department's appeals and confirming the allowance of 100% depreciation on the wind mill equipment, as it was found to be integral to the wind power project based on evidence presented.

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Issues involved:
Allowance of depreciation at 100% on wind electric generators vs. 25% allowed by the Assessing Officer.

Analysis:
1. The appeals by the department were against a common order passed by the CIT(A) regarding the allowance of depreciation for the assessment years 2002-03 and 2003-04.
2. The main issue in both appeals was the allowance of depreciation at 100% on wind electric generators as opposed to the 25% allowed by the Assessing Officer.
3. The company, engaged in civil construction, had a wind mill power project, and a search operation led to the dispute over the depreciation rate. The CIT set aside the AO's order, stating that depreciation should be at 25%, not 100%.
4. During the appeal before the CIT(A), the company argued that wind electric generators were part of the wind power project and should be eligible for 100% depreciation, citing legal precedents. The CIT(A) agreed, allowing depreciation at 100%.
5. The Departmental Representative contended that the company did not prove the equipment's connection to the wind mill, while the Authorized Representative argued the opposite.
6. After reviewing the evidence, the tribunal found that the equipment claimed for 100% depreciation was integral to the wind mill, as supported by invoices and expert opinions.
7. The tribunal upheld the CIT(A)'s decision, dismissing the department's appeals and confirming the allowance of 100% depreciation on the wind mill equipment.

This detailed analysis of the judgment highlights the key issues, arguments presented, legal precedents cited, and the final decision reached by the tribunal.

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