Delay in commissioning of Wind Mill due to COVID-19

[gvenugopal g]

Dear Experts,

Good Morning!.

Wind Mill installed in February-2020 and would have commissioned before 31-03-2020 so as to claim depreciation @40% for half year. But unfortunately the WTG Grid was commissioned on 08.06.2020, the reason for delay was due to COVID-19.

As we all aware that CBDT already announced postponement of all statutory payments/events from 31.03.2020 to 30.06.2020. Kindly clarify whether the above Fixed assets can be booked on 31.03.2020 and claim half year depreciation for FY 2019-20?

Thanks & Regards: G.Venugopal

[DR.MARIAPPAN GOVINDARAJAN]

In my view it is doubtful. However other views in this regard are expected.

AI Summary

Commissioning date uncertainty affects depreciation entitlement for assets delayed by COVID; statutory postponement complicates eligibility assessment. Whether a wind turbine installed in February may be treated as commissioned by 31-03-2020 to claim half-year depreciation, given actual grid commissioning on 08-06-2020 due to COVID delays and a CBDT postponement of statutory events to 30-06-2020, is queried; the advisor considers it doubtful that the asset can be booked as commissioned on 31-03-2020 for depreciation.