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The present appeals filed by the abovementioned assesses are directed against the order passed by the Principal Commissioner of Income tax, Central-2, Mumbai under Sec. 263 of the Income tax 1961, (for short „Act‟) for A.Y 2007-08, dated. 24.03.2017, which in itself arises from the assessment order passed by the Dy. Commissioner of Income tax, Central Circle-3(1), Mumbai u/s. 153A r.w.s. 143(3) of the „Act‟, dated 27.03.2015, in the case of Wind World India Infrastructure Pvt. Ltd., Mumbai, which had been assailed before us as I.T.A. No(s).2370/Mum/2017; against the order passed by the Principal Commissioner of Income tax, Central-2, Mumbai under Sec. 263 of the Income tax 1961, (for short „Act‟) for A.Y 2011-12 and A.Y 2012-13, dated 21.03.2017 and 23.03.2017, respectively, which in itself arises from the respective assessment orders passed by the Dy. Commissioner of Income tax, Central Circle- 3(1), Mumbai u/s. 153A r.w.s. 143(3) of the „Act‟, each dated 30.03.2015, in the case of Wind World Wind Resources Development Pvt. Ltd., Mumbai, which had been assailed before us as I.T.A. No(s).2371-2372/Mum/2017; AND the order passed by the Principal Commissioner of Income tax, Central-2, Mumbai under Sec. 263 of the Income tax 1961, which in itself arises from the order passed by the Dy. Commissioner of Income tax, Central Circle-3(1), Page |3 ITA Nos. 2370 to 2373/Mum/2017 Wind World India Infrastructure Pvt. Ltd., Wind World Wind Resources Development Private Limited & J.N Investment & Trading Co. Pvt. Ltd.

The appellant prays this Hon'ble Tribunal to quash the impugned order passed by the Ld. Principal CIT by invoking the provisions of section 263 of the Income Tax Act, 1961 ".

2. Briefly stated, the facts of the case are that the assessee company is engaged in the business of setting of Infrastructure facilities for evacuation of power generator through power projects. Search and seizure action u/s. 132 of the „Act‟ was carried out on Page |4 ITA Nos. 2370 to 2373/Mum/2017 Wind World India Infrastructure Pvt. Ltd., Wind World Wind Resources Development Private Limited & J.N Investment & Trading Co. Pvt. Ltd.

4. The Principal Commissioner of Income tax, Central-2, Mumbai deliberated on the assessment records of the assessee for the year under consideration, viz. A.Y. 2007-08, and observed that the assessee during the year under consideration had reflected „business operating income‟ at Rs. Nil. That it was noticed by the Principal CIT that the assessee in its „Profit & loss a/c‟ for the year under consideration, viz. AY: 2007-08, had after debiting operating and other expenses of Rs. 2,40,70,708/- and depreciation of Rs.1,03,03,651/-, shown a „business loss‟ of Rs.3,43,74,359/-. The A.O further observed that the assessee in its „Computation of income‟ after claiming „depreciation‟ of Rs.7,14,98,291/ on the „fixed assets‟ as per the provisions of the Income-tax Act, had computed the „business loss‟ at Rs. 9,53,44,278/- , which was carried forward by it for further adjustment/set off in the subsequent years. The Principal CIT on the perusal of the records Page |5 ITA Nos. 2370 to 2373/Mum/2017 Wind World India Infrastructure Pvt. Ltd., Wind World Wind Resources Development Private Limited & J.N Investment & Trading Co. Pvt. Ltd.

P a g e | 41 ITA Nos. 2370 to 2373/Mum/2017 Wind World India Infrastructure Pvt. Ltd., Wind World Wind Resources Development Private Limited & J.N Investment & Trading Co. Pvt. Ltd.

35. The Principal Commissioner of Income tax, Central-2, Mumbai deliberated on the assessment records of the assessee for the year under consideration, viz. A.Y. 2012-13, and observed that the A.O had allowed total depreciation of Rs. 48,76,67,650/- (including additional depreciation of Rs. 8,35,66,916/- on Wind Energy Converters), as claimed by the assessee. It was observed by the Principal CIT that the assessee had made addition of "Wind Energy Converters" of a value aggregating to Rs. 48,65,32,759/- (Rs. 34,91,36,408/- + Rs. 13,73,96,351/-) which was put to use by the assessee on 03.10.2011 and 31.03.2011, respectively. That it was observed by the Principal CIT that as the additions of the respective assets was made in the second half and put to use subsequently, therefore, the assessee had failed to examine the admissibility of the claim of the assessee in respect of 100% depreciation on the said fixed assets. The Principal CIT further observed that as per the provisions of Sec. 32(1)(iia), additional deprecation @20% of actual cost of plant and machinery acquired and installed after 31.03.2005, was only allowable to an assessee who was engaged in the business of manufacture or production of any article or thing. That in the backdrop of the aforesaid observations the Principal CIT held a conviction that as per Sec. 32(1)(iia) the additional depreciation was though allowed in respect of those plant and machinery which were used for manufacturing or production of an article or a thing, but however such plant and machinery which were not used for the said purpose, did not qualify for additional depreciation. It was further observed by the Principal CIT that Sec. 36(1)(iia) was amended by the Finance Act, 2012 to allow the additional depreciation to the assesses who were engaged in the business of generation or generation and distribution of P a g e | 42 ITA Nos. 2370 to 2373/Mum/2017 Wind World India Infrastructure Pvt. Ltd., Wind World Wind Resources Development Private Limited & J.N Investment & Trading Co. Pvt. Ltd.