2016 (3) TMI 457

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.... facts and in circumstances of the case and in law the ld CIT(A) has erred in allowing depreciation U/s 32(1)(iia) on wind mill even though the wind mill was not purchased in the context of core business of manufacturing of cables/conductors/parts and spare parts of machines." 2. The ld Assessing Officer observed that the assessee filed return on 27/11/2006 at NIL Income. In this case, scrutiny assessment was completed U/s 143(3) of the Income Tax Act, 1961 (in short the Act) on 29/12/2008 at the returned income i.e. NIL income. Thereafter, after recording the reasons U/s 147 of the Act, the case was reopened and notice U/s 148 was issued to the assessee and accordingly the case was scrutinized by the Assessing Officer. The assessee is eng....

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....Assessing Officer further held that manufacture or produce is entirely different from generation. Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users. After considering the assessee's reply, he allowed the depreciation U/s 32(1)(iia) of the Act @ 15% on plant and machinery....