2015 (10) TMI 1447

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....chlorate and generation of power through windmill. The assessee filed its return of income for the assessment year 2010-11 on September 27, 2010 admitting income of Rs. 2,58,83,550. Thereafter, the assessee filed revised return on October 12, 2010 declaring income of Rs. 2,44,57,950. The case of the assessee was selected for scrutiny and notice under section 143(2) was issued on August 30, 2011. During the course of scrutiny assessment, the Assessing Officer observed that the assessee had claimed expenditure under the head "repairs and maintenance" to the tune of Rs. 92,00,000 for replacing old windmill with the new one. The Assessing Officer held that the expenditure is capital in nature. Aggrieved by the addition/disallowance made by t....

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....dmitted the fact that the windmill of similar capacity was purchased and installed in place of totally damaged windmill. The learned Departmental representative further submitted that it is nowhere stated by the assessee that only certain parts of the windmill which were damaged were replaced. 5. We have heard the submissions made by the representatives of both sides and perused the orders of the authorities below. We have also examined the decision on which the learned authorised representative of the assessee has placed reliance. The contention of the learned authorised representative before us is that only damaged parts of windmill were replaced and not the whole windmill has been replaced with the new one. 6. We find that the auth....