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2021 (11) TMI 686 - HC - Income TaxAdditional depreciation @20% under Section 32(1)(iia) - assessee which generates electricity from thermal power is entitled for additional depreciation OR not? - HELD THAT:- In the State of Andhra Pradesh vs. National Thermal Power Corporation [2002 (4) TMI 694 - SUPREME COURT] held that electric energy can be transmitted, transferred, delivered, stored, possessed etc. in the same state as movable property. The Hon’ble Supreme Court followed its earlier decision in Commissioner of Sales Tax, Madhya Pradesh, Indore vs. Madhya Pradesh Electricity Board, Jabalpur [1968 (11) TMI 85 - SUPREME COURT]. Therefore, the revenue cannot dispute the fact that the electricity needs to be construed as a movable property as it being capable of being transmitted and transferred etc. Whether the respondent/assessee would be entitled to additional depreciation under Section 32(1)(iia)? - We are guided by the decision of this Court in the case of Commissioner of Income Tax, Kolkata-I vs. Ankit Metal and Power Limited [2015 (8) TMI 566 - CALCUTTA HIGH COURT] as followed the decision of Hi-tech Arai Limited [2009 (9) TMI 60 - MADRAS HIGH COURT] and CIT vs. VTM Ltd. [2009 (9) TMI 35 - MADRAS HIGH COURT] and held that the assessee therein which was also engaged in the activity of manufacturing of power is entitled for additional depreciation under Section 32(1)(iia) of the Act. To the same effect, there are several other decisions of other High Courts and the latest being in the case of PCIT, New Delhi vs. NTPC SAIL Power Co.(P.) Ltd. . [2019 (3) TMI 207 - DELHI HIGH COURT] We hold that the respondent/assessee is entitled for additional depreciation under Section 32(1)(iia) - Decided in favour of assessee.
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