Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 207 - HC - Income TaxAdditional depreciation u/s 32(1)(iia) - electricity is not an “article” or “thing” - assessee is a joint venture company of two public sector undertakings and is engaged in the production of thermal power - additional depreciation in respect of an entity engaged in the business of generation and distribution of power - HELD THAT:- Electricity has been held to be “goods” for the purposes of sales tax in the Constitution Bench judgment of the Supreme Court in State of Andhra Pradesh vs. NTPC Ltd. [2002 (4) TMI 694 - SUPREME COURT OF INDIA]. Electricity has all the necessary trappings of “articles” or “things” and the benefit of additional depreciation cannot be denied. As held by the Constitution Bench, electricity is capable of abstraction, transmission, transfer, delivery, possession, consumption and use like any other movable property. Following the same logic, to deny the benefit of additional depreciation to a generating entity on the basis that electricity is not an “article” or “thing” is in our view an artificially restrictive meaning of the provision. The benefit of additional depreciation under Section 32(1)(iia) has, therefore, been rightly granted to the assessee by the concurrent judgments of the CIT(A) and the Tribunal. We also note that, w.e.f. from 01.04.2013, the provision has been amended by the Finance Act, 2012 and assessee engaged in the generation of power have expressly been included in the ambit thereof. No substantial question of law arises
|