DCIT CC 3(1) CEN RG 3, MUMBAI vs. WIND WORLD WIND FARMS (KARNATAKA) LTD, MUMBAI

The assessee is engaged in the business of production of electricity through wind mills. The present assessment was completed u/s 153A r.w.s. 143(3) of the Act consequent to search operations conducted on 14.3.2013. The assessee had treated the cost of plinth/foundation of Wind mill as part of wind mill and had claimed depreciation @ 80%. The AO allowed the depreciation at 5% treating the same as Building. The Ld CIT(A) allowed the claim of the assessee by following the decision rendered by the Tribunal on identical issue. Aggrieved, the revenue has filed this appeal.

I heard the parties and perused the record. The Ld A.R furnished a copy of order passed by the co-ordinate bench in the case of M/s Enercon Windfarms (Jaisalmer) P Ltd in dated 04-06-2010, wherein the Tribunal has held that the basement constructed by the assessee to install and with-hold the heavy wind mill is part and parcel of the wind mill and without specially designed basement, the windmill cannot stand. Accordingly it was further held that the same has to be treated as plant and higher depreciation claimed by the assessee has to be allowed.

The Ld D.R did not furnish any contrary decision of any higher forum. Since the Ld CIT(A) has followed the decision rendered by the ITAT on an identical issue, I do not find any infirmity in his order.

In the result, the appeal of the revenue is dismissed. Order has been pronounced in the Court on 4.5.2017.