Case Law Details
Wind World India Infrastructure (P) Ltd. Vs. Pr. CIT (ITAT Mumbai)
Assessee contended that wind turbine generators were used for generation of electricity, which is akin to manufacturing of an article or thing as the electricity is intangible and its effect can be seen and felt, transferred, delivered, stored, processed, etc. It was, thus submitted by the assessee that it was entitled towards the claim of additional depreciation in respect of the new plant and machinery purchased and installed by it for generation of electricity.
ITAT held that When the generation of electricity by harnessing wind energy by the assessee could safely and rather inescapably be characterized as manufacturing or production of any article or thing, therefore, there was no reason to hold that the assessee, despite having satisfied all the requisite conditions contemplated in section 32(1)(iia), would, however still stand dis entitled and deprived of its claim of additional depreciation.
FULL TEXT OF ITAT ORDER IS AS FOLLOWS:
The present appeals filed by the above mentioned assesses are directed against the order passed by the Principal Commissioner of Income tax, Central-2, Mumbai under section 263 of the Income Tax 1961, (for short ‘Act’) for assessment year 2007-08, dated. 24-3-2017, which in itself arises from the assessment order passed by the Dy. Commissioner of Income Tax, Central Circle-3(1), Mumbai under section 153A read with section 143(3) of the ‘Act’, dated 27-3-2015, 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 section 263 of the Income tax 1961, (for short ‘Act’) for A.Y 2011-12 and assessment year 2012-13, dated 21-3-2017 and 23-3-2017, respectively, which in itself arises from the respective assessment orders passed by the Dy. Commissioner of Income Tax, Central Circle- 3(1), Mumbai under section 153A read with section 143(3) of the ‘Act’, each dated 30-3-2015, in the case of Wind World Wind Resources Development Pvt. Ltd., Mumbai, which had been assailed before us as I.T.A. No (section). 2371-2372/Mum/2017; AND the order passed by the Principal Commissioner of Income Tax, Central-2, Mumbai under section 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), Mumbai under section 153A read with section 143(3) of the ‘Act’, dated 24-3-2015, in the case of J.N Investment & Trading Co. Pvt. Ltd., Mumbai, which had been assailed before us as I.T.A. No. 2373/Mum/2017. That as certain common issues are involved in the aforesaid appeals, therefore, they are taken up and being disposed of by way of a consolidate order. We first take up the appeal for assessment year 2007-08 in I.T.A. No. 2370/Mum/2017. The assessee assailing the order passed by the Principal Commissioner of Income tax, Central-2, Mumbai, had raised before us the following grounds of appeal:–
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