TaxTMI 
TaxTMI 
2012 (12) TMI 485
X X X X Extracts X X X X
X X X X Extracts X X X X
....d, the appeals are taken up together for disposal on merits. 2. The common ground which has been assailed by the Revenue in all the three appeals is deletion of additions/disallowances made by the Assessing Officer on account of cost of transformer and civil works done in connection with windmills treating them as individual items and not forming part of windmill and the rate of depreciation on the aforesaid items to be charged at 15% and such items are not eligible for higher rate of depreciation as in the case of windmill. 3. The brief facts of the case are that the assessee is engaged in the business of manufacture and sale of cement. It has also set up windmills. The assessee made a claim of higher depreciation on windmill on t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ppeal before the Tribunal impugning the orders of the CIT(A)-II, Madurai. 4. The Authorized Representative appearing on behalf of the assessee submitted that the aforesaid ground raised by the Revenue in all the three appeals has already been decided by the co-ordinate Bench of the Tribunal in favour of the assessee in ITA No.2291/Mds/2008 relevant to the assessment year 2005-06 in the case of M/s.Asian Handloom Vs. DCIT., Trichy vide order dated 20th November, 2009. 5. The D.R representing the Revenue when confronted with the situation could not bring any law contrary to the issue already settled by the Tribunal in the aforementioned case. However, the D.R. submitted that since the Revenue has filed an appeal before the Hon'ble Hi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pecialized electrical fittings and high tension lines are all basic requirements for a wind mill plant. None of these requirements including the premises can be seen detached from what is called a 'wind mill' since a wind mill to work these are essential. All these are necessary inputs going into ultimate cost of such wind mill. The foundation structure or the specially demarcated appurtenant thereto cannot be considered as equivalent to a hotel or a cinema building which is adjunct to carrying on a hotel business or theatre business. On the other hand these can be deemed only a part of a windmill for harnessing wind energy. In coming to this conclusion we are fortified by decision of Hon'ble Karnataka High Court in the case of CIT v. Karn....
X X X X Extracts X X X X
X X X X Extracts X X X X
....9 of the assessee stand allowed." 7. The issue in hand is squarely covered by the order of the co-ordinate Bench of the Tribunal passed in the case of M/s. Asian Handloom(supra). Therefore, respectfully following the same, we dismiss the aforesaid ground in ITA No.1391, 1392 and 1655/Mds/2011 of the Revenue. 8. In appeal No.1655/Mds/2011 relevant to the assessment year 2008-09, the second ground agitated by the Revenue is with regard to deletion of disallowance under section 14A amounting to Rs. 2,95,287/-. The Assessing Officer vide assessment order dated 30.12.2010 disallowed 2% of Rs.1,47,64,357/- as expenditure incurred for earning exempted income (dividend income). 9. Aggrieved against the assessment order, the assessee preferred an....