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2021 (11) TMI 1103 - HC - Income TaxDisallowance of depreciation on the capital assets which according to the Revenue were not existing or available for verification - HELD THAT:- The facts on record clearly establish that the assessee company came into existence upon the conversion of the State Electricity Board into five electricity distribution companies. The assets and liabilities were distributed amongst these five companies and in the process the assessee received certain assets. The cost of acquisition of the transferer company as well as the written down value were reflected in the books of accounts required to be statutorily maintained and audited. As pointed out by the counsel for the assessee, such assets would include machinery and other hardware even inspection of which would not be easy for the Assessing Officer. However only on the ground that such assets were not immediately available for physical verification the claim of depreciation could not have been disallowed. No question of law arises. This question is therefore not entertained. Disallowance of prior period expenses - HELD THAT:- It is undisputed position that the issue is covered against the department by the judgment of this Court and against which the Revenue had abandoned the appeals before the Supreme Court. In that view of the matter, this question is not entertained without recording independent reasons. Applicability of Section 115JB to the assessee Electricity Company - HELD THAT:- We notice that other High Courts have under similar circumstances come to the conclusion that the said provisions prior to its amendment in the year 2012, would not cover the electricity company. The Kerela High Court in case of Kerela State Electricity Board [2010 (11) TMI 127 - KERALA HIGH COURT] had taken such a view in similar circumstances. Thus question No.3 is also not entertained.
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