TaxTMI 
TaxTMI 
2016 (12) TMI 1088
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....12 for the assessment year 2008-09. The facts of the case are that the return of income was filed by the assessee on 30.9.2008 declaring total income at Rs. 3,92,65,275/-. The case was selected for scrutiny and assessment was completed u/s.143(3) at total income of Rs. 7,87,05,331/- vide order dated 30.12.2010, after making certain additions. Aggrieved with the order of A.O., the assessee preferred an appeal before the CIT (A) which was partly allowed on 30.11.2011. Against the order of CIT (A) the assessee preferred appeal before the ITAT, which too was partly allowed vide order dated 28.9.2012. It is this order which is impugned in the present appeal. The assessee installed installed two windmills and other devices in Jaisalmer (Rajast....
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.... 28.9.2012 has allowed the appeal of the assessee on the point of depreciation holding that all these components were renewable energy devices being part of the windmill and specifically designed devices and allowed depreciation @ 80% on these components. The ITAT deleted the additions made by the A.O. and CIT (A) gave the following reasons: (a) That the money received from sale proceeds of land does not make the funds surplus till the liability in the form of term loan and unsecured loans, sundry creditors etc. are there. (b) No prudent businessman will divert his funds at a lower rate of interest when he himself was paying higher rate of interest unless and until mandated by the business consideration. The following questions of law ....
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....ty stated that the land was plain at the time of handing over the possession of the land?" Heard learned counsel for both sides and having perused the material on record. In so far as the question no.1 is concerned, the matter is fully covered by the decision of Gujarat High Court in the case of Commissioner of Income Tax versus Parry Engineering & Electronics (P) Ltd. reported in (2013) 49 Taxmann.com 252 (Gujarat) wherein the Gujarat High Court came to the conclusion that the windmill is a scientifically designed machinery in order to harness the wind energy to the maximum potential. The device being such it is mounted and fitted by way of construction equipped with electric fittings in order to transmit the electricity which is generate....
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.... way of secured loans of Rs. 9 crores. But this year assessee company has ventured in the new business of power generation by windmill and paid more than Rs. 12 crores by 30.9.2007 to M/s. Suzlon Energy, thus parked all the available funds with it in the new business venture. Therefore during the entire year also the assessee did not have any non interest bearing fund which could have been given to any company and family members of the shareholders and the same is also evident from the total interest pay out of Rs. 1,25,83,763/- as against Rs. 46,07,600/- of the previous year. During the discussion with the ARs, it has been explained that just before advancing money to Smt. Nirmla Agarwal the assessee has received sale proceeds of land sale....