2014 (1) TMI 1850

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....in disallowing eligible higher rate of depreciation of 80% on part cost incurred in order to bring windmill into existence and working condition; (b) Should have appreciated that the AO has erred in making the separate blocks of "windmill" which is in fact a single block entitled for uniform rate of depreciation @ 80% on entire cost of windmill generation and distribution of power; (c) Erred in ignoring the principal of' functional use of asset. Any consequential relief, to which the Appellant may be entitled under the law in pursuance of the aforesaid grounds of appeal, or otherwise, may thus be granted. The Appellant craves leave to add, alter, vary, omit, substitute or amend the above grounds of appeal, at any ti....

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....h the judgment of the Hon'ble Bombay High Court in the case of Cooper Foundry Pvt. Ltd. (supra) and therefore, allowable. Even with regard to the MEDA charges, Application charges, Professional charges and Bank charges to the extent such expenditure relate to the items of windmill eligible for 80% rate of depreciation, the same be allowed. In order to allocate the portion of such expenditure on 80% eligible assets and others, the Assessing Officer is directed to consider the submissions of the assessee and thereafter allocate the costs and re-compute the depreciation accordingly. Thus, on this ground, assessee succeeds. 12. Before us, the learned counsel for the assessee has raised an additional Grounds of Appeal which were hithert....

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....ontended that raising of additional grounds is unjustified in the present case. 15. We have carefully considered the rival submissions. The claim of the assessee for additional depreciation of 20% in terms of section 32(1)(iia) of the Act on the cost of windmill is in line with the judgment of Hon'ble Madras High court in the case of VTM Ltd (supra). So however, such a claim was not preferred before the lower authorities and the same has been raised as additional grounds before us. Pertinently, the claim of the assessee involves pure point of law which does not require fresh investigation of facts. Being a point of law and also it has a bearing on the determination of tax liability, we deem it fit and proper to admit such claim for....

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....the same was found in the line of judgment of Hon'ble High Court in the case of Cooper Foundary Pvt. Ltd., therefore, it was held allowable with regard to MEDA charges, civil work, application charges, professional fees, and bank charges to the extent of such expenditure referred to the item of windmill eligible to 80% of depreciation and the same should be allowed in order to allocate ocean of such expenditure of 80% on eligible assets and others. The Assessing Officer was directed to consider the submissions of the assessee and thereafter allocate the cost and re-compute the depreciation accordingly. So far as other additional ground relating to allowability of MEDA charges, civil work, application charges, professional fees, and bank cha....