2012 (11) TMI 215

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....the assessee is in the business of sale of imported second hand textile machinery and generation of electricity through windmills.   The assessee had installed two windmills. The first windmill was installed by the assessee in the year 2005. The second windmill was installed by the assessee in the month of September, 2007 in the current assessment year. The assessee had claimed 100% depreciation in respect of the second windmill installed as per the provisions of section 32(1) and Item xiii of New Appendix I read with Rule 5. 3. The assessee had filed its return of income relevant to the assessment year 2008-09 on 29.09.2008 declaring its income as Rs. 31,43,360/-. The case of the assessee was selected for scrutiny. Notice under ....

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.... the present case, the assessee is not involved in any manufacturing activity. For availing the benefit of additional depreciation, it is essential that assessee should be engaged in manufacturing activity. 6. On the other hand, Mr. T.Banusekar appearing on behalf of the assessee submitted that the assessee is operating windmill for generation of electricity. The assessee had installed first windmill way back in the year 2005. The assessee had not claimed additional depreciation on the first windmill, since the assessee was not involved in any manufacturing or production activity at that time. Now, the assessee is claiming additional depreciation on the second windmill as the assessee is already in the business of production/generation o....

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....ricity is the same as manufacturing activity relied on the order of the Delhi bench of the Tribunal in the case of National Thermal Power Corporation Ltd. Vs. DCIT., reported as 2012 (5) TMI 127 ITAT Delhi, wherein the Tribunal has held that "the process of generation of electricity is akin to manufacture or production of an article or thing." The A.R. has also referred to the judgement in the case of India Cine Agencies Vs. CIT reported as 308 ITR 98(SC) and contended that the term 'production' and 'manufacture' signify the same meaning, rather the word 'production' has a wider connotation than the word 'manufacture'. While every manufacture can be characterized as production, every production need not amount to manufacture. The word "p....