Orange Valley Windmills Pvt Ltd vs Tamil Nadu Generation And Distribution on 26 October, 2021
Author: N.Anand Venkatesh
Bench: N.Anand Venkatesh ... Orange Valley Windmills Pvt Ltd
WF HTSC No.2151, 4/244/1, Kppatti
Kannerimukku Post, Kotagiri-643217
Rep.by its Managing Director, Salim Deen ... Petitioner
commissioning are eligible
for the same depreciation rate as applicable for windmill
without appreciating that these are not the integral part of the
windmill without ... which the windmill cannot be worked.
2. Whether on the facts and circumstances of the case and in
law, the CIT(A) is justified
disallowance of
excess claim of depreciation of Rs.21,19,322/- on Windmill?
(b) Whether, in the
facts and circumstances of the case, the learned ... Income Tax Act, 1961 , on windmill?
2. (1) The first
question pertains to the claim of the assessee for depreciation, at
the rate
capitalization of
interest and processing fees on loan taken for purchase of
windmills: -Rs.2,15,51,123/-
Ground no. 7: Addition on account ... account of
capitalization and processing fees on loan taken for purchase
of windmills of Rs.2,15,51,123/-.
26. Ld. Assessing Officer noted that
brief facts of the case are that the assessee has installed the
windmill and started operations for generating the power from
09/02/2007 ... However, due to heavy depreciation
claimed on the windmill, the assessee had made losses from the
undertaking and had not claimed any deduction
income from
export and trading of iron ore, generation of power from windmill turbines and
income from interest. A search action under section ... 2014
Page 4 of 24
(iii) Denial of claim of depreciation on Windmill
on leased land component - Rs. 75,00,000/-
(iv) Unaccounted transactions with
account of short non-
allocation of proportionate overhead expenditure to windmills at
Gujarat and Karnataka."
14) "Ld. Commissioner of Income Tax (Appeals) erred ... account of short/non-allocation of proportionate overhead
expenditure to windmill unit in Gujarat and Karnataka. The
assessing officer made the disallowance on the ground
disallowing the assessee's claim of additional depreciation on windmill and expenses claimed, by way of contribution of PF and ESI contributions. Thus ... relevant to the assessment year 2006-07, they installed a windmill and the energy generated from the said windmill was used for captive use. Thus
work and Civil work -
Rs.20,82,47,820/- required to erect Windmill as integrated cost of
Windmill eligible for @80% depreciation ... granting additional depreciation on Windmills
generating "Power for captive consumption in spite of complying the
provisions of sec. 32(1)(iia).
4 Serum Institute
case aforesaid Hon'ble Gujarat High Court
held that "Windmill would require a scientifically designed machinery in
order to harness the wind energy ... have no use other than for the purpose of functioning of
the windmill. On the other hand, it can be easily imagined that windmill
cannot
