ITAT Pune: Higher Depreciation on Windmill Infrastructure Upheld

The Appellate Tribunal ITAT Pune allowed the assessee's claim for depreciation on the cost of Electric Yard Fencing at 80% and Preparation of Road for windmill installation at 10%. The Tribunal held that the foundation, civil, and electrical work were essential for the windmill installation, justifying the higher depreciation rate for the fencing. The decision, pronounced on May 29, 2013, by Shri Shailendra Kumar Yadav and Shri R.K. Panda, resulted in the partial allowance of the appeals in four related cases based on the same reasoning.

---

---

Issues involved: Claim for depreciation on the cost of Elect. Yard Fencing and Preparation of Road for windmill installation.

Summary:
The Appellate Tribunal ITAT Pune, in a common order for 4 appeals related to the same group on similar issues, addressed the claim for depreciation by the assessee on the cost of Elect. Yard Fencing and Preparation of Road for windmill installation. The assessee contended that the depreciation should be allowed at 80%, while the CIT(A) restricted it to 10% on certain grounds. The Tribunal referred to a previous decision and held that foundation, civil, and electrical work were necessary for the windmill installation, allowing depreciation at 80% on electric yard fencing but justifying 10% on the approach road. Consequently, the Tribunal partly allowed the appeal, directing the Assessing Officer to allow 80% depreciation on electric yard fencing and 10% on the approach road. This decision was applied to all 4 appeals, resulting in them being partly allowed based on the same reasoning.

The decision was pronounced on May 29, 2013, by Shri Shailendra Kumar Yadav, Judicial Member, and Shri R.K. Panda, Accountant Member.

---