TaxTMI 
TaxTMI 
TaxTMI 
2015 (1) TMI 436
X X X X Extracts X X X X
X X X X Extracts X X X X
....issioner of Income Tax-I, Ludhiana Vs. M/s Eastman International) and ITA No. 167 of 2014 (Commissioner of Income Tax-I, Ludhiana Vs. M/s Maxwell Inc.) pertaining to differently worded substantial questions of law but relating to the same questions. The substantial questions of law framed in ITA No. 350 of 2013 are as follows :- "i) Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in law, in upholding the order of the Ld. CIT(A) wherein disallowance of higher depreciation @ 80% on account of expenditure on installation of electrical line for power transmission and metering treated as not part of wind mill by the A.O., was deleted by the CIT(A)., ii) Whether on the facts and circumstances of the case a....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... distribution network etc. are an integral part of the wind mill. The Tribunal has erred in granting depreciation @ 80%. Counsel for the assessee, however, submits that power of evacuation infrastructure like electric lines etc. are specifically dedicated to the wind mill and cannot be used for any other purpose. The power evacuation infrastructure being integral and necessary for the wind mill to transmit electricity are integral to the renewable energy device and, therefore, depreciation @ 80% has been rightly allowed by the Income Tax Appellate Tribunal as well as by the CIT(A). Counsel for the assessee relies upon a judgment of the Rajasthan High Court in Commissioner of Income Tax Vs. K.K. Enterprises, (2014) 108 DTR Judgments 109, an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....similar to the facts involved in the case of Trumac Engineering Co. Pvt. Ltd. Mumbai Vs. ITO (supra) wherein vide order dated 27.6.2008 relevant finding given by the ITAT, Mumbai Bench "I" in para 21 to 24 read as under: "21. Coming to the next item, i.e. disallowance of depreciation of Rs. 42,50,000/_ in respect of contribution made to GEDA, Id. counsel reiterated the submissions made before the revenue authorities and submitted that the power generated from the wind mill farm at Navadra/Bhogat site is delivered to the substation of GEDA through HT lines. This power in turn is transferred to GEDA for further transmission. For this purpose, connection of grid at substation is required. The contribution information available. In fact, subse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e view that the assessee's appeal is to be allowed on merit. Firstly, it is to be seen that these macineries had no independent functioning as such. Merely because it improves the working system or controlling/ monitoring system, it cannot be treated as an independent machinery and not part of the integrated machinery. The submission of the learned counsel is that if the machinery installed at the first stage of installing the windmill itself, the claim of the assessee: would have been allowed, Merely because for some reason or other it was subsequently installed, does not mean that it is not a part of the machinery as such. Since the machinery had no independent functioning, we are of the view that the decision of the Hon'ble Calcu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntirety, it was held as follows :- "5. We do not find any merit in the argument advanced. The issue involved in these appeals has been considered by the Hon'ble Gujarat High Court in Tax Appeal No. 604 of 2012, decided on 29th Jan., 2013, in CIT Vs. Parry Engineering & Electronics (P) Ltd. In the case aforesaid, Hon'ble Gujarat High Court held that "Windmill would require a scientifically designed machinery in order to harness the wind energy to the maximum potential. Such device has to be fitted and mounted on a civil construction, equipped with electric fittings in order to transmit the electricity so generated. Such civil structure and electric fittings, therefore, it can be well imagined, would be highly specialized. Thus, such....