High Court affirms Tribunal's decision on Windmill expenses, no substantial question of law

The High Court upheld the Tribunal's decision on depreciation for expenses related to setting up Windmills, stating they were integral parts of the Windmill and not separate items for Plant and Machinery. The Court cited precedents and concurrent findings of fact, dismissing the appeal due to no substantial question of law. Additionally, the Court referenced settled law on depreciation for civil foundation work, following a previous case's decision and dismissing the appellant's challenge. The appeal was ultimately dismissed on both issues, with no costs awarded.

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Issues:
1. Depreciation on expenses incurred on Power Evacuation Infrastructure, Erection and Commissioning, Line Work, and Electrical Fittings.
2. Depreciation on the cost of civil foundation work.

Issue 1:
The appellant challenged the Tribunal's decision to allow depreciation at 80% on expenses related to Power Evacuation Infrastructure, Erection and Commissioning, Line Work, and Electrical Fittings, arguing that these were not part of the Windmill and should be eligible for depreciation at 15% as items of Plant and Machinery. The Respondent-assessee capitalized the cost of Windmills and claimed depreciation at 80%, which the Assessing Officer disputed. The Commissioner of Income Tax(Appeals) partially upheld the claim, and both parties appealed to the Tribunal. The Tribunal upheld the depreciation at 80% for certain items and allowed the appeal for other expenses related to setting up the Windmill. The High Court found that the items in question were integral parts of the Windmill, following precedents and concurrent findings of fact. The Court dismissed the appeal, citing no substantial question of law.

Issue 2:
The second issue involved the depreciation on the cost of civil foundation work. The High Court noted that this matter was previously decided in a case involving Cooper Foundary Pvt Ltd, where depreciation at 80% was allowed. As the issue was settled law, the Court did not entertain the question raised by the appellant. Consequently, the appeal was dismissed, and no costs were awarded.

In conclusion, the High Court upheld the Tribunal's decision regarding depreciation on various expenses related to setting up Windmills and the civil foundation work, citing precedents and settled law. The appellant's appeal was dismissed on both issues, and no costs were awarded.

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