2020 (1) TMI 1157

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....etals. In this case, assessment under Section 143 (3) of the Act was completed on 27.03.2014 determining the total income at Rs. 13,62,37,670/-. On the ground of Disallowance of depreciation for 6 months on wind mills, the same was put to use for less than 180 days. During the course of assessment proceedings, the assessing officer found that the assessee had erected two windmills KER 448 & KER 449 at the cost of Rs. 7.10 Crores and claimed full value of depreciation @ 80%, but had entered into Power Purchase Agreement (PPA) with Kerala State Electricity Board (KSEB) on 30.09.2010 and commercial production started only on 23.10.2010, the date on which the first reading was taken by KSEB. 3.The assessee claimed that the windmills KER 448 & ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....urchase Agreement was signed on 30.09.2010 in both cases and held that the assessee is entitled to full claim of depreciation even if the machine is kept ready for use or used for trial run without actual commercial production. 5.Further it is seen that on the claim of depreciation on civil and electrical components, the CIT(A) relied on the decision of Hon'ble Karnataka High Court in the case of CIT Vs.Karnataka Power Corporation (247 ITR 268) and allowed higher depreciation @ 80% in respect of civil work and other electrical installation works considering the same as a part of the cost of the windmill. 6.Aggrieved by the Appellate order, the Revenue filed an appeal before the Appellate Tribunal. The Appellate Tribunal held that duri....