TaxTMI 
TaxTMI 
2015 (7) TMI 642
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....ering the Transformer, HT, Electrical supply unit as integral part of Wind Mill". 2. When the notice was issued and the case was taken up for hearing, none appeared on behalf of assessee. So appeal is being decided after hearing the Ld. DR, exparte assessee-respondent. 3. Briefly stated, assessee is engaged in the hotel business and forayed into the business of Wind Mill Power Generation. It admitted income of Rs. 60,19,060/- under normal provisions and deemed income of Rs. 4,08,79,035/- u/s. 115JB of the Income Tax Act [Act]. In the course of scrutiny assessment, Assessing Officer (AO) disallowed partdepreciation claimed at 80% of wind mill on other Plant & Machinery items such as Transformer of Rs. 13.91 Lakhs, HT of Rs. 19.45 Lakhs, E....
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....t and parcel of windmill not qualifying for depreciation at higher rate of 80% : 1. Windmill Project included following Three bills (enclosed) of Rs. 60,92,845. 1. Component & Accessories of Renewable Energy Device 1700KV A, 33/0.690KV Copper Wound Transformer with all fittings - Rs. 13,91,000. 2. Installation (with Material) of electrical line for power transmission and metering in respect of your windfarm project consisting of one WTG for your 1.50 MW Windmill at Location No. R232- Rs. 19,45,845. 3. Electrical Items, components of renewable energy device/windmill, in respect of windfarm project consisting of one WTG for your 1.5 Mw Windmill at Location No. R232- Rs. 27,56,000. ii. It is submitted that the description as detailed....
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....ich are integral part of the capital asset i.e., the wind mill and is eligible for higher depreciation. The AR relied on the decision of Hon'ble ITAT in the case of ACIT Vs. Rakesh Gupta (Chd-Trib) 60 SOT 0081 where on a similar issue, it was held that expenditure related to generation and transmission facilities would be part of the capital asset and eligible for higher rate of depreciation. Respectfully following the ratio of above decision, it is held that the expenditure under consideration is on the assets which are integral part of the wind mill and accordingly eligible for higher rate of depreciation. The addition made by Assessing Officer is deleted". 6. After considering the Ld. DR and perusing the orders of the authorities, ....
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....nsumption of that energy is not possible. Therefore, this energy has to be 'transmitted' with the use of a 'transmission system' which further requires a 'distribution system' to make use of that energy. Therefore, the generation, the transmission and distribution of energy, in fact is the 'Wind-Mill'. Without the combination of the above three systems, the idea of wind mill will not became viable. Without the system No. (ii) and (iii), the wind mill cannot even be commissioned. Since the electricity cannot be stored, one cannot simply go on generating it in the air and let it be wasted. Therefore, the expenditure incurred towards systems (i), (ii) and (iii), have to be clubbed and cannot be separated". 7. ....
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.... be noted that the price has been charged for supply, erection and commissioning of wind electrical generators. The seller of the wind mill equipment has also issued a certificate, a copy of which is at page 38 of the paper book, wherein it is clarified that the equipment supplied by them to assessee is not just wind electric generator but the complete wind mill unit consisting of the following components: 1. Gear Box & its related accessories, 2. Blades, 3. Tower, 4. Generator & its related accessories, 5. Power cables, 6. Communication Cables, 7. Main Bearing and Shaft, 8. Electronic Controllers, and 9. Power (Main) Panel. 9. It was further clarified by the sellers that all the aforesaid components are integral part of the wind mill uni....