TaxTMI 
TaxTMI 
2015 (3) TMI 676
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....CIT(A) at 100% on wind electric generations as against @ 25% allowed by AO. 3. Briefly the facts relating to the issue in dispute are, assessee a company is engaged in the business of civil construction. A search and seizure operation u/s 132 of the Act was carried out in case of assessee on 24/03/2007. Pursuant to the search and seizure operation, notices were issued u/s 153A of the Act for the impugned assessment years and ultimately, assessments were completed u/s 143(3) read with section 153A of the Act. After completion of the assessment as aforesaid, ld. CIT (Central) in exercise of power u/s 263 of the Act called for the assessment records and after examining them was of the view that assessment orders passed by AO is erroneous an....
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....ricting the depreciation to 25%. In support of such contention, assessee relied upon certain judicial precedents. Ld. CIT(A) after considering the submissions of assessee and documentary evidences available on record including invoice copies, etc. allowed assessee's claim of depreciation at 100% with the following findings: "4.6 I have carefully gone through the assessment orders and written submissions filed before me. It is not a disputed fact that the appellant is having windmill power project and was commissioned on 30/03/2002. The only point of contention is rate of depreciation on wind electrical generators. In this regard, the Rajasthan High Court in the case of CIT Vs. Agarwal Transformers have construed the word wind electric ge....
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.... in restricting the depreciation to 25%. 7. We have considered the submissions of the parties and perused the orders of revenue authorities as well as other materials on record. After going through the documentary evidences placed before us which also forms part of record before the departmental authorities, we do not find any infirmity in the findings of ld. CIT(A). It is clear from the assessment order, assessee's claim of depreciation at 100% on wind mill equipment was rejected by AO simply for the reason that as wind electric generator is in the nature of electrical equipment, depreciation is to be allowed @ 25% and not at 100%. However, as found from the facts on record, assessee claimed 100% depreciation on assets worth Rs. 14,73,7....
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....ir opinion have stated that the main components of wind turbines are as under: 1. Blades, 2. Gear Box, 3. Generator, 4, Tower, 5. Foundation, 6. Step up transformer, 7. Metering arrangement, and 8. 11/33 kV overhead lines. They have further opined that wind electric generator is an integral part of the wind mill and it is specifically designed, so that they can convert mechanical energy into electrical energy when installed in a wind mill. Without the generator unit, the wind mill cannot achieve the desired purpose. They further clarified, as the generator is the main component, the equipment supplied for wind mill installation is some times referred to as wind electric generator in industry terms. It was stated that the complete unit....