The Income Tax Appellate Tribunal (ITAT), Delhi bench consisting of DR. BRR Kumar, Accountant Member, and Yogesh Kumar U.S., Judicial Member held that assessee engaged in generation and selling of power can claim deduction u/s801 of ITA.
The assessee, Nalwa Steel, and Power Ltd are engaged in the field of manufacturing and selling sponge iron, billets, wire rod, TMT and generation of power, etc. The assessee filed its e-return declaring total income and the said return was revised, by declaring a return of income. After following the due procedure under the law and the assessment order has been passed against the assessee by assessing the income of the assessee.The assessee preferred an appeal before the Commissioner of Income-Tax (CIT). The Commissioner of IncomeTax deleted the disallowance of Rs. 5,38,95,043/- on account of excess deduction claimed u/s 80IA(8) of the Act, deleted the addition of Rs. 69,89,846/- on account of depreciation made while calculating books profit u/s 115JB of the Act. The two appeals have been filed by the Revenue and the assessee against the order passed by CIT.
Granting relief to the assessee, the ITAT said ”the assessee is eligible for additional depreciation. It has further been held that the amendment which has been brought in by the Finance (No.2) Act, 2012 whereby the assessee engaged in the business of generation or distribution of power have specifically been included and held eligible for claim of additional depreciation of electricity were held to be eligible for additional depreciation.It was accordingly held that the assessee is entitled to additional depreciation on the power plant and the windmill installed during the year. In view of the above, we hold that the assessee is entitled to additional depreciation on account of production/generation of power. The grounds raised by the assessee on this are accordingly allowed”
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