2013 (4) TMI 846

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....e Maharashtra Energy Development Agency (MEDA) @ 80% holding that the same formed part of the windmill." 2. The issue is whether the Ld.CIT(A) justified in holding that the assessee is entitled for 80% depreciation on the civil work and electrical items and on fees paid to the MEDA for being part of the windmill. 3. The briefly stated facts are as under. The assessee has purchased 3 windmills from TS Windpower Developers towards which the assessee has capitalized cost of Rs. 3,51,16,920/-. On the said amount the assessee has claimed depreciation @ 80% which was worked out to Rs. 1,86,05,388/-. The assessee has got commissioned those windmills on 01-10-2007. The Assessing Officer had reservation in respect of allowing the depreciation ....

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....cision is as under: 4. We have heard the rival parties. The Ld. Counsel submits that in assessee's own case for the A.Y. 2007-08, the issue has been considered by the Tribunal and has allowed the claim of assessees on depreciation at 80% on the foundation, erection and installation cost of the wind mill. The Ld. Counsel has filed the copy of the Tribunal order in assessee's own case for the A.Y. 2007-08. We have also heard the Ld. D.R. We find that the issue of the rate of depreciation applicable to the cost of foundation of erection and commissioning has already been considered by the Tribunal in assesee's own case for the A.Y. 2007-08. The Tribunal has held that foundation is the integral part of the wind mill and same is eligible for ....

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....ees 6,28,750/- 6. 31-03- 2006 Contribution towards common power evacuation infrastructure facility 37,50,000/- 8. In respect of above six components of cost of windmill claimed by the assessee, the Assessing Officer allowed depreciation at 15% and not at 80% as claimed by the assessee. The CIT(A) however, considered the items of costs at No 1 to 5 qualifying for higher rate of depreciation being integral part of windmill. In so far as item no. 1 is concerned, the cost of Rs. 30,93,500/- is towards supply of electrical items of the windmill itself. The CIT(A) has observed that such cost in the installation of windmill has been found by the Tribunal in the case of Poonawala Finvest and Agro Pvt. Ltd. (supra) as an inte....