J.N Investment & Trading Co. P.Ltd, ... vs Pr Cit 2, Mumbai on 27 September, 2017

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.

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.

49. The Ground of Appeal No. 5 being general in nature is dismissed.

50. We thus in terms of our aforesaid observations set aside the order passed by the Principal CIT under Sec. 263 of the „Act‟, and restore the order passed by the A.O under Sec. 153A r.w.s. 143(3).

51. The appeal of the assessee is partly allowed in terms of our aforesaid observations.

52. The appeal of the assessee, viz. Wind World India Infrastructure Pvt. Ltd for A.Y 2007-08, marked as ITA No. 2370/Mum/2017 and the P a g e | 55 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.

appeal of the assessee, viz. Wind World Wind Resources Development Pvt. Ltd. for A.Y 2012-13, marked as ITA No. 2372/Mum/2017 are allowed, while for the appeal of the assessee, viz. Wind World Wind Resources Development Pvt. Ltd. for A.Y. 2011-12, marked as ITA No. 2371/Mum/2017 is partly allowed, and the appeal of the assessee, viz. J.N. Investment and Trading Co. Pvt. Ltd. for A.Y. 2011-12, marked as observations.



Order pronounced in open court on 27/09/2017

            Sd/-                                                   Sd/-
       (G.S. Pannu)                                       (Ravish Sood)
Accountant Member                                       Judicial Member
भंफ
  ु ई Mumbai;ददनांक 27.09.2017

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