TaxTMI 
TaxTMI 
2022 (7) TMI 167
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....f the I.T. Act, 1961. This issue has been discussed in Para 7 of the assessment order. To put it briefly, the AO during the course of assessment proceedings noticed that the appellant company had commissioned a wind mill GBY-19 at Village Yelmarwadi, Site Agaswadi, Tal. Phaltan, Dist. Satara. As per commission certificate issued by Maharashtra State Electricity Distribution Co. Ltd. dated 12/04/2012, the. windmill was successful commissioned on 31/03/2012. The AO noticed that apart from normal depreciation in respect of wind mill as per applicable rate of 80%, the appellant company had also claimed additional depreciation of Rs.1,05,23,548/- u/s 32(1)(iia) of the I.T. Act, 1961. Accordingly, the AO confronted the appellant on this issue of admissibility of additional depreciation claimed by the appellant. In reply the appellant filed following submissions before the AO: "1. We have claimed depreciation @80% on written down value basis for six months and we claimed additional depreciation of 20% under section 32(1)(iia) of the Income tax Act, 1961 for machinery of plant acquired in the business of manufacture or production of article or thing or in the generation or generat....
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.... of air-conditioning contract in India b) Design, Drawings & Execution of air-conditioning contract Abroad c) We purchase spare parts of the air-conditioning equipments, assemble them and export the airconditioning equipments which make us a manufacturing concern. d) We also undertake repairs & Maintenance of air-conditioning systems & Installation e) Sales and Purchase spare part of air-conditioning equipments. f) We also engaged in generation of power by windmills. We have four windmills Since we are engaged in manufacturing we have claimed additional depreciation U/S 32(1)(iia) of the Income Tax Act at 20%. For the Windmill installed at STARA during the year. We have claimed normal depreciation of 40% plus 20% additional depreciation total 60% Depreciation is claimed 2,10,71,096/-+ 1,05,35,548 Total Depreciation Amount is Rs. 3,16,06,644=00. While claiming the deduction we have relied on following cases. 1) Income Tax Appellate Tribunal - Pune Mrs. Sulbha Subhash Lodha, vs Department Of Income Tax on 24 September, 2014. 2) Velayudhaswami Spinning Mills (P) Ltd. 340 ITR 471 ( Mad.) ....
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....he outer steel body of the ship and simultaneously various equipments and machineries are installed inside the ship structure as the ship body fabrication progress. For our Air conditioning plant also, we need to install our machinery progressively as the shipbuilding activities moves. We first bring basic equipments such as compressor, sea water cooled condenser, AHU, electrical control panel etc. and as and when we get clearances and space allocations for these equipments we installed them in their respective position. For other ancillary items such as ducting, refrigerant piping etc we bring raw material such as galvanized sheets, cooper & steel pipes and manufacture this ducting & piping in the shipyard so that the manufactured small individual duct & pipe pieces can be taken inside the ship structure and install them in very cozy spaces available. The every duct & pipe piece needs to be manufactured in the shipyard using various manufacturing machineries such as ducting, lock forming & bending machine, tube cutter brazing, welding, drilling & cutting machineries. Finally these manufactured ducting pieces are connected & joined with AHU to deliver the Air conditioned a....
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....not. In any case, in absence of clear provision regarding admissibility of additional depreciation in respect of power generation units prior to A.Y. 2013-14 in the Act, I do not find any infirmity in the order of the AO and disallowance of Rs.1,05,23,548/- under section 32(1)(iia) of the I.T. Act, 1961 is upheld and the ground is dismissed." 3. Both the learned representatives reiterated their respective stands against and in support the lower authorities' action under challenge disallowing the assessee's additional depreciation claim. We make it clear that the assessee has already been granted normal depreciation on the corresponding fixed asset i.e. windmill(s) since the instant appeal is only concerned with additional depreciation issue. A perusal of para 5.2 page 4 in Assessing Officer's assessment order dated 10.03.2015 reveals that the assessee is in windmill's power generation business at least since A.Y. 2008-09. We therefore reject the Revenue's argument that it is not entitled for the impugned additional depreciation claim pertaining to installation of air-conditioning unit since going against the facts on record. 4. Next comes the most significant aspect of entitl....
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....-14 which is retrospective. Aggrieved, assessee preferred an appeal before the CIT(A). 4. The CIT(A) allowed the claim of assessee by stating that this Plant & Machinery was installed in AY. 2010-11 i.e., wind mill having capacity of 1,800 KV and this was commissioned and put to use on or before 31-03-2011 at S.F. No. 348/P1, Vandhiya, Bhachau, Kutch, Gujarat. Assessee claimed the additional depreciation @ 10% in claimed depreciation in AY. 2011-12. The additional depreciation was claimed u/s. 32(1)(iia) of the Act for the reason that the assessee is engaged in manufacturing/production of any article or thing and this new Plant & Machinery was acquired before and installed before 31- 03-2010. The CIT(A) followed the order of the ITAT in AY. 2010-11 in ITA No. 4899/Mum/2014, order dated 26-08-2016 in assessee's own case. 5. We find that this issue is squarely covered by the decision of Co-ordinate Bench of this Tribunal in assessee's own case, wherein it was held as under: "2.1 Next issue is with regard to additional depreciation of Rs.2,19,29,891/- on two windmills acquired and installed by assessee during the year, which was confirmed by CIT(A). As state....