AI Drafter 
TaxTMI 
TaxTMI 
2015 (10) TMI 1759
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....tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-priority:59; mso-style-unhide:no; border:solid windowtext 1.0pt; mso-border-alt:solid windowtext .5pt; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-border-insideh:.5pt solid windowtext; mso-border-insidev:.5pt solid windowtext; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND RAM LAL NEGI, JUDICIAL MEMBER For The Assessee : Shri Nitin Waghmode For The Revenue : Shri Shekhar Gupta ORDER PER N.K. BILLAIYA, AM: ITA No. 4157/M/13 and C.O. No. 164/M/2014 are appeal and cross objection by the Revenue and the assessee against the very same order of the Ld. CIT(A)-24 Mumbai dated 28.2.2013 pertaining to A.Y. 2007-08. ITA No. 4158/M/2013 and C.O. No. 165/M/2014 are appeal and cross objection by the Revenue and the assessee against the very same order of t....
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....ssessee was asked to produce the complete details regarding the erection and commissioning of both the WEG. The assessee filed copies of commercial invoice No. SWL/WEG/055 DATED 31.02.2007 for the WEG in Tamil Nadu. It was explained that the amount of Rs. 90 lakhs paid to Southern Wind Farms Ltd. includes the erection and commissioning charges. The assessee also produced the Commercial Invoice No. PWPL/KA/02/06-07 dated 9.3.2007 in respect of WEG installed in Karnataka State. The assessee also supplied another commercial invoice No. ENC/97/06-07 dated 30.3.2007 for Rs. 2,24,480/- being the charges for Erection and Commissioning of the WEG in Karnataka State. After considering the facts and the submissions and the relevant documentary evidences supplied by the assessee, the AO found that the cost of land for WEG in Tamil Nadu was Rs. 58,500/- as per the photocopy of the Sale Deed furnished by the assessee. 4.4. The AO further observed that one of the representative of the assessee Shri Anil Sharma in his letter dated 23.12.2009 had admitted that the said land was procured by Southern Wind Farms Ltd., and Pioneer Windcon Pvt. Ltd., and the assessee has paid Rs. 3 lakhs towards the....
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....h regard to Approval of WEG commissioning. As per this letter dt. 22/01/2007 it is clearly mentioned that the name of the promoter was Swani Corporation, location, capacity and the identification number is mentioned as WEG HTSC No. U135S. The assessee's AR during the hearing has drawn my attention to this approval letter that at point No.6 under "condition to be fulfilled by the promoter" it is mentioned as 6) It should be ensured before commissioning of the WEG that the WEG erected is a new machine and not a second hand machine by certifying the supporting documents. Similarly, letter dt. 21/02/2007 issued by Executive Engineer Operation and Maintenance Udumalpet to the Superintendent Engineer Udumalpet wherein it is also mentioned that M/s Swani Corporation, Mumbai have completed the 225 KV link line works for the energize ion of the WEG and further mentioned in paragraph No.3 of the above mentioned letter as under:- "The newly erected 1x225 KW WEG is to be connected with boards grid through the existing 22kv Gudimangalam feeder fed of 110/22KV Udumalpet Sub-Station permanently. 4.3.8 The DDIT, Unit-Il, Coimbatore has also enclosed the installation certificate dt.....
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.... reasons: i) There is no agreement for erection and commissioning. ii) There is inconsistency in respect of the cost of land iii) No break-up of individual machineries have been given in respect of the WEG. iv) There are no identification No. of the wind mill v) The assessee has not proved that the Wind Mill has been installed was a new Wind Mill. 9.1. At the very outset, we have to state that whether the installed Wind Mill was new or old would not affect the claim of depreciation as per the provisions of the law. Further we find that the report of the DDIT, Unit-II Coimbatore is self speaking report wherein the Revenue authorities have made a detailed investigation in respect of the erection of Wind Mill Energy in the State of Tamil Nadu. The excerpts of the said report has been incorporated by the Ld. CIT(A) in his order from para 4.3.7 onwards and a gist of which is exhibited elsewhere and the report of DDIT (supra). We have no hesitation to hold that the assessee's claim for purchasing a Wind Mill, erecting the same and generating electricity are fully substantiated. Therefore, the assessee is entitled to the claim of depreciation as per the provisions of the la....
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....ted the findings of the Revenue authorities. 16. After giving a thoughtful consideration to the facts under consideration, we find that except for the admission of one of the Authorised Representative, there is no documentary evidence to suggest that the assessee has incurred cost outside the books of account. Merely on the basis of an unsubstantiated submission cannot lead to the addition u/s. 69C of the Act. The assessee has purchased the land for Rs. 58,500/- and therefore to this extent, the assessee is not entitled for the claim of depreciation. While deleting the addition of Rs. 2,41,500/-, we direct the AO to withdraw the depreciation on the amount of Rs. 58,500/-. Ground No. 1 is partly allowed. 17. Ground No. 2 relates to the claim of additional depreciation on the WEG. 17.1. It is the claim of the assessee that additional depreciation is to be allowed in respect of new machinery or plant acquired and installed after 31.3.2005 which prescribed for 20% of the capital cost of such plant and machinery. As the additional plant and machinery has been installed after 30.9.2006 but before 31.3.2007, the same is to be restricted to 10% of the total cost of the plant and m....