TMI Blog2021 (11) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law in quashing the order passed by the Ld. CIT u/s 263 of the I.T. Act, 1961, by disregarding that the assessment order of the A.O. was erroneous and pre-judicial to the interest of the Revenue in allowing the claim of depreciation u/s 32(1)(iia) in A.Y. 2011-12 which came into effect from 1st April, 2013, i.e. from the A.Y. 2013-14? We have heard Mr. Tilak Mitra, learned counsel for the appellant assisted by Mr. Soumen Bhattacharjee, learned advocate and Mr. Rahul Tangri, learned counsel for the respondent assisted by Mr. Deepro Sen, learned advocate. The short question involved in this appeal is whether the respondent/assessee which generates electricity from thermal power is entitled for additional depreciation at the rate of 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hi-tech Arai Limited reported (2010)321 ITR 477 (Madras) and CIT vs. VTM Ltd. reported in [2009] 319 ITR 336 (Mad) 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. reported in [2019] 103 taxmann.com 398 (Delhi). In the light of the above, we hold that the respondent/assessee is entitled for additional depreciation under Section 32(1)(iia) of the Act. For the reasons, the appeal filed by the revenue is dismissed and the substantial question of law is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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