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Before: Shri Abraham P. George & Shri Duvvuru RL Reddy
O R D E R
PER DUVVURU RL REDDY, JUDICIAL MEMBER:
This appeal filed by the Revenue is directed against the order of the Commissioner of Income Tax (Appeals) 1, Coimbatore dated 30.06.2017 relevant to the assessment year 2012-13. The only effective ground raised in the appeal of the Revenue is that the ld. CIT(A) has erred in allowing the claim of depreciation for the assessment year 2012-13.
2. The Assessing Officer determined the total loss of the assessee at ₹.10,25,94,240/- while completing the assessment under section 143(3) of 2 the Income Tax Act, 1961 [“Act” in short]. On computing the above loss, the Assessing Officer disallowed the additional depreciation claimed under section 32(1)(iia) of the Act to the tune of ₹.69,00,000/- on the windmill purchased by the assessee.
The assessee carried the matter in appeal before the ld. CIT(A). After considering the submissions of the assessee, facts of the case as well as following various decisions, the ld. CIT(A) has allowed the appeal filed by the assessee.
Aggrieved, the Revenue is in appeal before the Tribunal. The ld. DR submitted that the eligibility of additional depreciation on wind mill is not the point at issue, but, applicability of provisions of section 32(1)(iia) of the Act is the point at issue and thus, pleaded that the order of the ld. CIT(A) should be reversed.
On the other hand, the ld. Counsel for the assessee supported the order passed by the ld. CIT(A).
We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. In this case, the Assessing Officer disallowed the claim of additional depreciation on wind mill on the ground that the amended provisions of section 32(1)(iia) of the Act would be applicable from 01.04.2013 only and consequently such claim made in the assessment year 2012-13 is not available to the assessee. As rightly contended by the ld. DR, we find that the eligibility of additional depreciation on wind mill is not the issue in appeal. The business of generation, transmission or distribution of power was brought within the ambit of section 32(1)(iia) of the Act by the Finance Act, 2012 from 01.04.2013, i.e., from the assessment year 2013-14. Since the case of the assessee is for the assessment year 2012-13, obviously, the assessee is not eligible for the benefit of additional depreciation during the relevant assessment year. Similar finding was given in assessee’s own case for the assessment years 2011-12 vide order dated 10.07.2017 in I.T.A. No. 2468/Mds/2016. The case law relied on by the ld. CIT(A) in the appellate order has no application to the facts of the case on hand. Thus, we set aside the order of the ld. CIT(A) on this issue and restore that of the Assessing Officer. Accordingly, the ground raised by the Revenue is allowed.