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2012 (8) TMI 337 - AT - Income TaxDenial of claim of deduction u/s 80-IA(4)(iv)(c) - assessee is an electricity distribution company - Held that:- For entitlement to claim deduction u/s.80-IA(4)(iv)(c)there should be substantial renovation and modernisation of existing network of transmission or distribution lines by the electricity distribution company & the Assessee had to achieve an increase in the book value of the fixed assets - plant & machinery viz., Lines, Cable Network by at least 50% of the book value of such plant & machinery as on 01.04.2004. The criteria for claim of deduction u/s 80 IA was not satisfied as the assessee seeks to rely on the expenditure incurred during the previous year which were in connection with renovation and modernization of cable and transmission line which were not complete and were in progress and therefore classified as CWIP. The fact that they were shown as CWIP in the books of account would only mean that renovation and modernization of the existing transmission or distribution lines had not been recognized as complete - reliance of assessee on the point "the same should be put to use" for allowance of deduction is nowhere mentioned - the expression “undertakes substantial renovation and modernisation” cannot be read in isolation and has to be read along with Explanation to section 80-IA(4)(iv)(c) - against assessee.
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