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2022 (4) TMI 98 - AT - Income TaxRevision u/s 263 - claim of the assessee for additional depreciation under Section 32(1)(iia) - scope of amendment to the provisions of Section 32(1)(iia) - PCIT, noted that the assessee-company engaged only in the business of distribution of electricity was not entitled to claim additional depreciation as per the relevant provision of Section 32(1)(iia) as applicable to the year under consideration, i.e. AY 2015-16 - HELD THAT:- As provisions of Section 32(1)(iia) of the Act, as amended from time to time, relating to the additional depreciation are applicable to the electricity companies across all the States on the basis of nature of business carried on by them and the benefit of the same thus is available uniformly to all the electricity companies irrespective of their States on the basis of the nature of their activities, notwithstanding the organizational set up decided by them. It, therefore, cannot be said that there is any hardship or discrimination causing to the electricity companies on the basis of their State if the provisions of Section 32(1)(iia) of the Act, as amended from time to time, are interpreted on the basis of language used therein which is plain, clear and unambiguous and applied accordingly. Having regard to the language used while making the amendment to the provisions of Section 32(1)(iia) by the Finance Act, 2016 which is plain, clear and unambiguous and keeping in view the legislative intention behind the said amendment as explained in the relevant memorandum to extend the benefit of additional depreciation in respect of the cost of new plant or machinery acquired and installed even by the assessees engaged only in the business of distribution of electricity/power from a certain date, i.e. 1st April 2017, we are of the view that the same cannot be treated as declaratory/curative in nature so as to give retrospective effect to it as sought to be contended by the learned Counsel for the assessee. The said amendment made effective by the legislature clearly from 1st April 2017; thus is applicable in relation to Assessment year 2017-18 and subsequent Assessment Years; and the same, therefore, cannot be applied to the year under consideration, i.e. AY 2015-16, to allow the assessee additional depreciation under Section 32(1)(iia) The assessment order passed under Section 143(3) of the Act allowing the said claim of the assessee thus was erroneous as well as prejudicial to the interest of the Revenue; and, the learned PCIT, in our opinion, was fully justified in revising the same by his impugned order passed under Section 263 - Decided against assessee.
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