2015 (12) TMI 556

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....ified in deleting the disallowance made by the A.O. on account of depreciation." 2. Brief facts of the case are that the assessee is carrying on the business of manufacturing & trading of HT/LT line equipment, switches, clamps connectors, isolators, electricity generation through wind power and trading of electrical goods. During the assessment year under consideration, the assessee had installed a Wind Mill at village Sadiya, District Jaisalmer. Total investment made in the Wind Mill project is Rs. 3,52,71,729/- and the assessee has claimed depreciation @ 80% i.e. 2,82,17,383/-. The AO vide order sheet entry dated 19.11.2010, the Counsel of the assessee was asked to furnish the evidences in respect of commissioning of the Wind Mill and ....

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....f October 2007 from our 0.60 MW Wind Farm at village : Sadiya, Distt. Jaisalmer. Dear Sir, Please find enclosed herewith the joint meter reading at common delivery point for the electricity delivered during the month of October 2007 by 0.60 MW wind power project to RVPN grid taken jointly by RVPN, JVVNL and Suzlon Energy Limited on 01.03.2008. As per the Power Purchase Agreement, we are enclosing herewith the break up of net electrical units exported, as submitted by M/s. Suzlon Energy Limited at common delivery point for the purpose of adjustment of units generated as per the following details - 1. Energy Export : 38507 KWH 2. Energy Import : 3032 KWH   Net Energy Export : 35475 KWH &nbs....

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....he assessee and the disallowance of Rs. 1,41,08,690/- on account of excess claim of depreciation is deleted." 5.1 Before deciding the issue it is appropriate to discuss the relevant provisions for depreciation provided under s. 32 of IT Act as well as Appendix 1 and Appendix 1A to r. 5(1A) of IT Rules. For better understanding we quote subcls. (i) and (ii) of s. 32(1) which are as under : "32(1). In respect of depreciation of' (i) in the case of assets of an undertaking engaged in generation or generation and distribution of power, such percentage on the actual cost thereof to the assessee as may be prescribed; (ii) in the case of any block of assets, such percentage on the WDV thereof as may be prescribed." " Provided fu....