In a major relief to Dakshin Haryana Bijli Vitran Nigam, the ITAT Delhi has confirmed the deletion of income tax addition amounting to approx. Rs. 328 Crores on account of “Surcharge levied but not realized”.
Earlier, the income tax department made an addition of Rs.328,69,90,916/- on account of non- inclusion of “surcharge accrued/levied on electricity bills yet not realized during the year” in its total income, even though the assessee has regularly been following the mercantile system of accounting.
On appeal, the first appellate authority granted relief to the assessee.
The Revenue approached the Tribunal contending that the the consumers have not challenged such levy of surcharge and thus assessee’s right to receive surcharge has matured and the income become taxable due to accrue/arise in the year.
A bench comprising Mr. Kul Bharat (JM) and Ms. Anadee Nath Mishra (AM) observed that the Revenue has filed this appeal in Tribunal to keep the disputed issue alive, considering that at the time of filing of this appeal, the issue had not attained finality, as Revenue had taken this disputed matter, in the assessee’s own case, before the Hon’ble Supreme Court, for Assessment Year 2006-07.
“At the time of hearing before us, the Ld. Counsel for assessee drew our attention to order of Co-ordinate Bench of ITAT, Delhi, dated 30.11.2011, in which, in the assessee’s own case for Assessment Year 2006-07, in ITA No.250/Del/2010, the identical issue in dispute in similar facts and circumstances, was decided in favour of the assessee and against Revenue. The Ld. Counsel for assessee further drew our attention to order dated 01.10.2014 of Hon’ble High Court of Punjab & Haryana, in assessee’s own case, for Assessment Year 2006-07 wherein the appeal by the Revenue was dismissed by the Tribunal,” the Tribunal observed.
Dismissing the appeal, the Tribunal held that “We have heard both the sides. We have perused the materials on record. There is no dispute over the fact that issue in dispute in the present appeal before us is squarely covered in favour of the assessee and against Revenue, by the aforesaid orders dated 30.11.2011, 01.10.2014 & 17.07.2019 of Co-ordinate Bench of ITAT, Delhi; the Hon’ble High Court of Punjab & Haryana; and Hon’ble Supreme Court respectively. Neither side has brought any facts and circumstances for our consideration to distinguish the assessee’s case in Assessment Year 2014-15 (to which this present appeal pertains) from Assessment Year 2006-07 to which the aforesaid orders dated 30.11.2011, 01.10.2014 & 17.07.2019 pertained. In view of the foregoing, and with utmost regards for Hon’ble Supreme Court; Hon’ble High Court of Punjab & Haryana; and Co-ordinate Bench of ITAT, Delhi; we decide the issue in dispute in the present appeal before us in favour of the assessee and against Revenue.”
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