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TMI Blog2024 (12) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal 'B' Bench, Bengaluru ('ITAT' for short) in ITA No.2104/Bang/2017. It may be stated here, vide the said order, ITAT has disposed of two cross-appeals against the order of the Commissioner of Income Tax (Appeals) ['CIT (A)' for short]. 2. The appeal was admitted on 26.06.2023 on the following substantial questions of law: "1. Whether, on the facts and in the circumstances of the case and law, the Tribunal is right in law in allowing depreciation on solar plant for Rs. 20,27,43,229/- by holding that the asset was put to use during the relevant financial year when conditions for claiming depreciation as prescribed in Section 32 are not satisfied by assessee for financial period 2012-13 and when approval for setup of Solar Power Proj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of ABT Meters. On 30.03.2013, the respondent received approval of the Chief Electrical Inspector, Government of Andhra Pradesh for energizing the electrical equipment. On 30.03.2013, supervisory charges were paid by the respondent to the Central Power Distribution Company Ltd. for connecting the solar plant to the Central Grid and carrying out works in that regard. On 30.03.2013, respondent raised bills for the power generated and supplied to the EPC Contractor. Similarly on 31.03.2013, another bill was raised for power generated and supplied to the EPC Contractor. On 10.04.2013, transmission lines and grid connection works were completed. On 12.04.2013, completion report was issued in respect of the aforesaid works by the Superintending ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approval for setting up of solar power project was granted by the Chief Electrical Inspector, Government of Andhra Pradesh only in the financial period 2013-14. According to him, the order of the Tribunal holding that Assessee is eligible to claim depreciation on solar plant by following decision of this Court in the case of Commissioner of Income Tax -Vs.- Sri. Chamundeshwari Sugar Ltd. [(2009) 309 ITR 326 (Kar)] is a perverse finding. He also states, the Tribunal erred in not considering the written submissions filed by the Revenue before the Tribunal on 01.12.2021, wherein it was stated that the grid at 33KV level was made in the financial year 2013-14 and not in financial year 2012-13 as conditions prescribed under Section 32 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n synchronization took place with the grid, in the financial year 2013-14. 10. As stated above, the CIT (A) in paragraphs No.6.9 to 6.12, has held as under: "6.9 In my view, the date of synchronisation of the Solar Plant with the grid cannot be regarded as the date on which the Solar Plant is put to use, for the simple reason that an asset could be regarded as being put to use when it used by the assessee for purpose of business. Thus, the date on which the Solar Plant starts generation of electricity will be the date of which the asset has been put to use and not when it supplied electricity to the grid. The reason for this conclusion is quite simple. As has been clarified by the Electricity Authorities, the synchronisation of solar pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted the electricity charges credited to the profit & loss account as income but, disregarded the same only for the limited purpose upholding that the Solar Plant is not put to use. Such contradictory findings and approach followed by the A.O. cannot be a basis for denial of depreciation. It is therefore held that the appellant has been able to substantiate the use of the Solar Plant during the year under appeal. 6.11. I also find that the generation of electricity by the Solar Plant during the year is independently certified by the Superintending Engineer, Operations, Government of A.P. The appellant has produced the clarification of the Superintending Engineer dated 18.11.2016 along with the appellant's reply dated 24.11.2016 addre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into force. After the execution of the Power Purchase Agreement, the generator has supplied the power to the consumers M/s. Dr. Reddy's Laboratories Ltd., and bills have been raised as per the Power Purchase Agreement". 6.12. From the aforesaid facts and material on record, I find that the appellant's solar plant was completed and approved by the CEIG on 30.03.2013. The appellant was also generating solar power from 20.03.2013 and it was being supplied to the workers colony near the local villages from 30.03.2013 till 22.04.2013 when the power purchase agreement was signed and supply of solar power to the purchaser through the grid was entered into. Having regard to the fact that the appellant has generated power and supplied it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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