2014 (7) TMI 986

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....d mill for generation of power and electricity which is neither manufacture or production of any article or thing as contemplated u/s. 32(1)(iia) of the Act. The assessee's C.O. is in support of the Revenue's appeal. 2. The assessee has claimed additional depreciation of Rs. 34,97,760/- on wind mill. The A.O. gave reasonable opportunity of being heard on this issue. After considering the assessee's reply and Hon'ble Supreme Court decision in case of CIT vs. N. C. Budharaja & anr 204 ITR 412 that the assessee was not manufacturing or producing any article or thing as electricity power cannot be considered as movable article or thing. Accordingly, it is not eligible for additional depreciation. He further relied in case of Tamil Nadu Chlorat....

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....e additional wind mills, both prior to as well as after the installation of the additional wind mills, the assessee was using wind energy for generating power for its captive consumption apart from selling the surplus power generated to the Tamil Nadu electricity Board. As far as application of s. 32(1)(iia) is concerned, what is required to be satisfied in order to claim the additional depreciation is that the setting up of a new machinery or plant should have been acquired and installed after 31st March, 2002 by an assessee, who was already engaged in the business of manufacture or production of any article or thing. The said provision does not state that the setting up of a new machinery or plant, which was acquired and installed upto 31....