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2021 (6) TMI 664 - AT - Income TaxDisallowance on account of investment allowance u/s 32AC - Appellant is a State Government Public Sector Undertaking engaged in the business of generation of electricity - whether electricity is “goods”? - WhHELD THAT:- We find force in the written submissions filed by the ld. AR of the assessee. In the case of Vedanta Ltd. [2020 (9) TMI 1010 - ITAT DELHI] relying on the judgement of Sesa Goa [2004 (11) TMI 14 - SUPREME COURT] and NTPC Ltd [2012 (5) TMI 127 - ITAT DELHI] directed the AO to allow the claim of deduction u/s 32AC of the Act. As held generation of electricity is a manufacturing activity decision cited supra, The electricity can be transmitted, transferred, delivered, stored, possessed etc. The Hon'ble Supreme Court in the case of the CST Vs. Madhya Pradesh Electricity Board [1968 (11) TMI 85 - SUPREME COURT] has held that electricity falls within the definition of goods under the provisions of Sale of Goods Act, 1930. Therefore, respectfully following the above judgements , we set aside the order of CIT(A) and direct the AO allow the assessee’s claim of deduction u/s 32AC of the Act. Accordingly, the ground raised by the assessee on this issue is allowed.
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