ITAT: Third Member allows 'additional depreciation' on windmill; Sec 32(1)(iia) amendment of 2012 applicable retrospectively

Pune ITAT third member  rules that  process of generation of electricity through windmill amounts  to ‘manufacture or production of article or thing’ as contemplated u/s 32(1)(iia),   allows assessee’s ‘additional depreciation ’ claim on windmills  for  AYs 2011-12 & 2012-13; During relevant AYs, apart from claiming accelerated depreciation @ 80% u/s. 32(1)(i) (available to power generation companies), assessee  also claimed additional depreciation  @ 20% u/s. 32(1)(iia), accepts assessee’s  stand that conversion of wind energy into electric energy by windmill amounts to ‘manufacture ’ as contemplated u/s 32 (1)(iia),  relies on Madras HC ruling in Atlas Export Enterprises;  Third member dissents with Accountant member view that in light of ‘substantive’ amendment made by Finance Act 2012 to extend & include activity of ‘generation of power’ under the ambit of Sec 32(1)(iia) with effect from  April 1, 2013, benefit of initial depreciation/ additional depreciation could not be extended to windmills acquired prior to AY 2013-14;  Third member agrees with Judicial member view that amendment brought to Sec.  32(1)(iia) was clarificatory and not ‘substantive’ in nature, accordingly was retrospective in application:ITAT