2016 (1) TMI 1252

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....vichandran, CA ORDER N. R. S. Ganesan (Judicial Member) This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-II, Chennai, dated 21.07.2014 and pertains to assessment year 2006-07. 2. Dr. B. Nischal, the Ld. Departmental Representative, submitted that the assessee claimed additional depreciation on the windmill. The assessee explained before the A....

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....n to the extent of 20% under Section 32(1)(iia) of the Act. The Assessing Officer disallowed the claim of the assessee on the ground that generation of electricity does not amount to production of thing or article. Placing reliance on the judgment of the jurisdictional High Court in CIT v. VTM Ltd. (2009) 319 ITR 336, the Ld. representative submitted that the assessee before the Madras High Court ....

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....t to manufacturing of article or thing. The assessee admittedly in the business of manufacturing iron and steel products. The electricity generated by the windmill was used for captive consumption in manufacturing activity. Therefore, the question arises for consideration is when the assessee used the electricity generated by the windmill in manufacturing activity, whether the assessee is entitled....