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Depreciation rate for Windmill Urgent Sir!!! (Income Tax)

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This query is : Resolved



( Author )
08 August 2010

Dear Experts,
1)A company has bought Wind Mill. For claiming depreciation as per Income Tax Act while went and saw the Depreciation as per Income Tax Act can i claim 80% - Block 11?
2)For claiming Depreciation under Income Tax Act, is it enough if the assessee has installed and commissioned the wind mill?
3) Is it necessary to get a certificate from a Certified Engineer that Wind Mill has been installed and comissioned on such date? only then can we claim depreciation?
4) Is it not mandatory for the asset to put in use for claiming depreciation if it is not a replaceable asset?
Your reply will be highly appreciated.
Pls. provide me the case laws or section or AS for providing your reply, so that i can present my case effective to my higher authorities.
With regards,
Rajesh.


CA.Amit Revankar

( Expert )
08 August 2010

Dear Rajesh,
1) Definition of windmill machine -
A machine that runs on the energy generated by a wheel of adjustable blades or slats rotated by the wind.
Something, such as a toy pinwheel, that is similar to a windmill in appearance or operation.
considering the assets, it seems that it will fall in block-11, beacuse it seems to be enrgy saving device.

2)There are various judicial decision which are continously saying that " the asset which are ready to use should be also be treated as put to use and depreciation will be allowed accordingly. In other words there is something known as active voice and passive voice for the purpose of put to use, u r case falls in latter.
3)Incase of readymade asset, the date of purchase is put to use, but incase of in house constructed asset, the date is the date when the contractor says that asset is ready for which he gives the certificate which is relavant proof. Furthur if u have any other sources to prove that asset is ready to use than it will also work. At the end of the day u have to prove that asset is ready to use by reliable way.
let me know incase of other view.9324227338


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