Depreciation on wind power plant allowed where invoices, receipts and commissioning certificate proved installation and commissioning during the year.

Contemporaneous documentary evidence showing dispatch, installation and commissioning of a wind power generation plant during the relevant year supports allowance of depreciation. Invoices, delivery challans, lorry receipts, supplier clarification and a commissioning certificate were relied on to establish that the plant was commissioned by 31.03.2006. On that basis, depreciation was held allowable and the disallowance was deleted, as it could not rest on mere suspicion or contrary inference where the record proved timely commissioning.

---

---

Issues: Whether depreciation on the wind power generation plant was allowable for the relevant assessment year, having regard to the evidence of dispatch, installation and commissioning.

Analysis: The assessment was reopened after revision under section 263 and the disallowance was made mainly on the grounds that the plant was allegedly not set up by 31.03.2006. The record included invoices, delivery challans, lorry receipts, the supplier's clarification that the plant was dispatched and installed before 30.03.2006, and a commissioning certificate showing commissioning on 31.03.2006. These materials established that the wind power generation plant was commissioned during the year under consideration.

Conclusion: The assessee was entitled to depreciation on the wind power generation plant and the disallowance was rightly deleted.

Ratio Decidendi: Where contemporaneous documentary evidence shows that a plant was dispatched, installed and commissioned during the relevant year, depreciation cannot be disallowed merely on suspicion or on the basis of contrary inference.

---