2012 (3) TMI 693 - AT - Income Tax

Revenue's Appeal Denied for Additional Depreciation on Windmill

The Revenue appealed against the order allowing additional depreciation under section 32(1)(iia) on a windmill. The Assessing Officer disallowed the ... - Issues involved: Appeal against order allowing additional depreciation u/s 32(1)(iia) on windmill.Summary:Issue 1: Additional Depreciation Claim- The Revenue appealed against the CIT(A)'s order allowing additional depreciation u/s 32(1)(iia) on windmill.- The Assessing Officer disallowed the additional depreciation claimed by the assessee on the windmill.- The CIT(A) allowed the appeal of the assessee citing relevant decisions of the High Court.- The assessee, deriving income from various sources, filed a return declaring total income and claimed additional depreciation under section 32(1)(iia).- The Tribunal noted that additional depreciation is allowable for new machinery or plant acquired after a specified date by an assessee engaged in manufacturing or production.- As the assessee was not engaged in manufacturing or production activities, the Tribunal held that the assessee was not entitled to additional depreciation on the windmill.- The Tribunal distinguished the case from previous decisions where the assessees were engaged in manufacturing or production activities.- Consequently, the Tribunal set aside the CIT(A)'s order and restored that of the Assessing Officer, allowing the grounds of appeal of the Revenue.Final Decision:- The appeal of the Department was allowed.