spread over in the proportion of cost of civil
work, cost of wind mill and cost of plant & Machinery and the depreciation ... submitted that there is no merit in segregation of windmill
cost into cost of windmill, cost on civil work consisting of foundation / work for
transformer
allowed
depreciation @80% on the entire cost of windmill which included
expenses for civil work, foundation, erection and commissioning
and testing. It was argued that ... submitted that foundation
expenses of plant and machinery/windmill is part of cost of plant
and machinery/windmill and therefore depreciation
capitalized a sum of Rs 7,80,99,198/- towards cost of
windmill and has claimed depreciation @ 80% and additional
depreciation @ 20% on such cost ... cost of the windmill at which the assessee agreed to purchase the
windmill and the same would therefore not reduce the cost of windmill
each windmill. That NEGMIPL was required
to render much more services/component etc. and installation of windmill was on a hilly
site, the cost ... more than cost to the said entities. Assessee also
submitted statement giving comparison of the cost of windmill of the same make and
same capacity
assessee had installed a Windmill
costing of Rs.4,65,00,000/-. On the entire cost of windmill, depreciation was
claimed @ 80% on all assets ... that the
entire civil cost of Rs.20,00,000/- be considered as an integral part of the cost
of Windmill by applying
cost of land. As per the
Assessing Officer, the component of the cost of civil work contained in the
total cost of windmill ... allowance of depreciation on the component of
cost of civil work in the cost of windmill, it is similar to that decided
parcel of the
windmill apparatus and hence, such costs were included in the cost of
windmills and accordingly, the assessee has claimed higher depreciation ... Accordingly, the assessee submits that the
cost of these items has been rightly included in the cost of windmills and
thus, the depreciation
windmills being Rs. 2.2 crores. In respect of the other 3 windmills purchased from M/s. IWEL, he held that the cost price ... finding that the finance cost is much higher than the prevailing interest rates which means that the cost of the windmills has been reasonably estimated
assessee,
considered together, it would be much more than the cost of windmill.
4. Though the assessee relied on a valuation by a Chartered
Engineer ... claiming depreciation with reference to the enhanced cost. He worked
out the actual cost of the windmill as `43,28,388/- and allowed
depreciation only
cost of windmill. The Assessing
Officer denied the same by observing that as the plant and
machinery of windmill is controlled by GEB and even ... learned tribunal has
materially erred in holding that on the cost of windmill the
assessee is entitled to the additional depreciation under
Section
