Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1227 - HC - Income TaxEligibility to deduction u/s 80-IA - Has the Appellate Tribunal any material or evidence on record to justify its finding that the assessee has not substantially renovated and modernised the transmission and distribution lines within the meaning of Section 80-IA? - Held that:- If we look at the scheme of Section 80-IA(2), it does not speak about the business of assessee but of “undertaking” or “enterprise”. Then, an undertaking or an enterprise alone matters for the Revenue to decide the eligibility. Significantly, section 80-IA (2), the charging provision, does not refer to “business” as such. The assessee acquired in March, 2005 certain tea estates at Munnar, as a going concern. This acquisition included the erstwhile “Devikulam Estate” from Tata Tea Limited. The plant and machinery thus acquired included the electric power distribution network-the transmission lines. The assessee produced an audited certificate that the written down value of the plant and machinery as on 01/04/2004 was ₹ 88,39,340/-. It has claimed that it spent for the assessment year 2008-09 ₹ 50.31 Lakh to renovate and modernize its transmission network. So, the amount spent is over 50% of the then existing establishment's book value. Indeed, the undertaking squarely falls under Section 80-1A(4)(iv) (c) of the Act. The renovation or modernization, admittedly, took place between 01.04.2004 and 31.03.2011. To be specific, the assessee claims that the undertaking’s renovation or modernization has brought about “substantial improvement in the 'line loss.' Substantial renovation and modernization has been done by replacement of High Tension distribution lines and installation of new CT/PT units.” Conclusion: In the above circumstances, the Assessing Officer’s disallowing under section 80-IA of the Act, as affirmed by the Appellate Authority and the Tribunal, cannot be sustained. - Decided in favour of assessee.
|