TaxTMI 
TaxTMI 
2014 (12) TMI 673
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....e returned after the audit, he became indisposed on account of severe illness and had to keep away from the office for a few days. Hence, the Ld. AR submitted that in the process, there was a delay of 75 days in filing the appeal before the Tribunal which is due to reasons explained above and beyond the control of the Petitioner. 3. The Ld. DR has not raised any serious objection for condonation of delay in filing the appeal by the assessee. 4. We have heard both the parties and perused the record. We find that there exists reasonable cause for not filing the appeal in time and the reasons advanced by the assessee for the delay are bona fide. Being so, we condone the delay in filing the appeal by the assessee and admit the appeal for adjudication. 5. The assessee has raised the following grounds: 1) The CIT(A) erred in invoking the provisions of section 263 of the Income tax Act in respect of higher claim of depreciation in Windmill. , 2) The CIT(A) erred in his finding that "Electrical works including supply and installation of Electrical items" and "Development and other charges to KSEB" are not part of renewable energy device and therefore, not entitled to higher ....
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....alued at Rs. 7,52,00,000/- and claim of depreciation of Rs. 3,00,80,000/- The amounts in respect of electrical works including supply and installation of electrical items and development and other charges to KSEB were shown as Rs. 37,31,828/- and Rs. 12,45,000/- equally and respectively distributed among Location Nos. 456 and 457 where the windmills were installed and the total amounts to Rs. 99,53,656/- for which depreciation was claimed by the assessee. The Assessing officer disallowed the rate of depreciation claimed by the assessee for Electrical works including supply and installation of electrical items not being part of windmill installation and falling within the ambit of Plant & Machinery used in connection with the trading of electrical energy produced. According to the Assessing officer, development and other charges to KSEB is only a requirement of the KSEB as per the agreement and not an integral part of the windmill installed and as the construction of transmission line is not a part of the windmill, the deprecation claimed was against rules. 9. The CIT stated that the depreciation table was very specific and clear that depreciation @ 80% and expenses on electrical....
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....istration charges and there is no evidence either in the order or the file as to whether the Assessing officer had applied his mind judiciously on the issue of claim of higher depreciation on transmission line and other such material. The CIT found that the order falls within the ratio of the decision of the Supreme Court in the case of Toyota Motor Corporation (306 ITR 49) wherein it was held that it is also necessary for the parties to know the reasons that have weighed with the adjudicating authority in coming to a conclusion and in the present case, the order was cryptic and devoid of reasoning with respect to the higher depreciation relating to transmission line. 12. According to the CIT, the examination of the assessment order does not evidence any indication that the Assessing officer had applied his mind to the issue and made a judicious order after evaluating the evidences submitted before him. According to the CIT, in the absence of any discussion in the order, note on the file, it cannot be held that the Assessing officer had examined the issue, applied his mind and had allowed the said depreciation. The CIT held that the Assessing officer should have either in the or....
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....2010) 132 TTJ (Ahd.) 233. 4) ACIT vs. M/s. Kutti Spinners Pvt. Ltd. in I.T.A. Nos. 755&756/Mds/2013 dated 08-05-2014 - ITAT, Chennai 'D' Bench. 5) ACIT vs. M/s. Shivani Enclave (P) Ltd. in I.T.A. No. 840/JP/2011 with C.O. No. 26/JP/2012 dated 25-07-2014 - ITAT, Jaipur Bench. 6) ACIT vs. M/s. Western Precicast Pvt. Ltd. in I.T.A. No. 2524/PN/2012 dated 22/01/2014 - ITAT Pune Benches "A". 7) ACIT(OSD) vs. Parry Engineering & Electronics P. Ltd. in I.T.A. No. 3317/Ahd/2011 with C.O. No. 44/Ahd/2012 dated 2nd March 2012 - ITAT, Ahmedabad. 8) DCIT vs. Datacraft India Ltd. (2010) 6 taxmann.com 85 (Mum. ITAT (SB). 15. The Ld. DR relied on the order of the CIT. 16. We have heard the parties and perused the record. Section 263 of the Income-tax Act seeks to remove the prejudice caused to the revenue by the erroneous order passed by the Assessing Officer. It empowers the Commissioner to initiate suo moto proceedings either where the Assessing Officer takes a wrong decision without considering the materials available on record or he takes a decision without making an enquiry into the matters, where such inquiry was prima facie warranted. The Commissioner will be well with....
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....es erroneous because an enquiry has not been made or genuineness of the claim has not been examined where the inquiries ought to have been made and the genuineness of the claim ought to have been examined and not because there is anything wrong with his order if all the facts stated or claim made therein are assumed to be correct. The Commissioner may consider an order of the Assessing Officer to be erroneous not only when it contains some apparent error of reasoning or of law or of fact on the face of it but also when it is a stereo-typed order which simply accepts what the assessee has stated in his return and fails to make enquiries or examine the genuineness of the claim which are called for in the circumstances of the case. 17. In this case, the CIT was of the opinion that excess depreciation was allowed to the assessee in respect of windmill to the extent of Rs. 8,00,000/- which was accepted by the assessee during the sec. 263 proceedings as typographical error. Being so, on this count, we do not find any infirmity in the order of the CIT. . 18. The second argument of the assessee's counsel is that electrical works is part of renewable energy devices and so, the assesse....