Additional depreciation u/s 32(1)(iia) available in respect of windmill

Air Control India Pvt. Ltd Vs ITO (ITAT Pune)

Held that as the assessee is in windmill’s power generation business, additional depreciation available for windmill u/s 32(1)(iia).

Facts-

The assessee’s sole substantive grievance raised in the instant appeal challenges correctness of both the lower authorities’ action disallowing its additional depreciation claim of Rs.1,05,23,548/- u/s 32(1)(iia) of the Act on windmill.

AO alleged that since the appellant was engaged in the business of design drawing and execution of air conditioning contract in India or abroad and also undertook repair and maintenance of air conditioning system and installation along with purchase and sale of spare parts and air conditioning equipments, the appellant was not eligible for claiming deduction u/s 32(1)(iia) of the I.T. Act, 1961 on account of additional depreciation.

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