Relief to Karnataka Renewable Energy Development: SC dismisses SLP by Income Tax Dept with delay of 104 days [Read Order] 

The Supreme court dismissed the special leave petition of income tax department against the Karnataka renewable energy development which was filed with a delay of 104 days.

The Special leave petition was arisen from the order dated  22-11-2022 in ITA No. 371/2018 passed by the High Court Of Karnataka At Bengaluru wherein the court observed that the unallocated expenses made by the assessee had no relation to the income computed out of the power generation from wind mills.

The respondent assessee is a company wholly owned by the government of Karnataka with the object of promoting non conventional energy sources. Assessee installed windmill  and while determining the income on generation of power from wind mills, assessee had charged off expenses and claimed deduction under section 80-1A(4)(iv)of the Income Tax Act, 1961.

The Court held “the direct income and expenses under the power generation from Wind Mills alone is to be taken into I consideration while arriving at profit to be claimed as deduction under the Section 80IA of the Act.”

Section 80IA of the Income Tax Act provides tax benefits to businesses that operate in infrastructure, power, telecommunication, and other specified sectors. This provision offers tax deductions and exemptions to encourage businesses to invest in the mentioned sectors. Investments in these sectors help our country's economic growth, thus, the Income Tax department encourages it by providing tax exemptions.

Even though the Court condoned the delay ,Justice B V Nagarathna and justice Ujjal Bhuyan refused to interfere in the matter.

To Read the full text of the Order CLICK HERE

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