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| The Tax Publishers2020 TaxPub(DT) 0654 (Mad-HC) INCOME TAX ACT, 1961
Section 32
Even though windmill was put to use beyond 180 days, it was already covered by the judgment in the case of B. Loganathan v. ITO(3), Chennai [T.C.A.No.120 of 2009 dated 07-2-2019 : 2019 TaxPub(DT) 2108 (Mad-HC)] and therefore the depreciation claimed by assessee was allowed.
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Depreciation - Depreciation on windmill - Windmill put to use for more than 180 days - Allowability
Assessee was in the business of manufacture and sale of gold and other precious metals. AO found that assessee had erected two windmills KER 448 and KER 449 and claimed full value of depreciation @ 80%, but had entered into Power Purchase Agreement (PPA) with State Electricity Board. Assessee claimed that two windmills were connected to electricity grid and depreciation should be allowed at full rates as they were put to use for more than 180 days. AO rejected this claim and restricted depreciation to 50% of eligible depreciation on the ground that windmills were used only for less than 180 days. Held: Even though windmill was put to use beyond 180 days, it was already covered by the judgment in the case of B. Loganathan v. ITO(3), Chennai [T.C.A.No.120 of 2009 dated 07-2-2019 : 2019 TaxPub(DT) 2108 (Mad-HC)] wherein depreciation was allowed to assessee.
REFERRED : B.Loganathan v. ITO(3), Chennai [T.C.A.No.120 of 2009 dated 07-2-2019 : 2019 TaxPub(DT) 2108 (Mad-HC)]
FAVOUR : In assessee's favour
A.Y. :
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