TAMILNADU GENERATION AND DISTRIBUTION CORPORATION LIMITED,CHENNAI vs. ACIT CORPORATE CIRCLE 3(1), CHENNAI

The Ld. AR placed on record issue-wise chart and advanced arguments. The Ld. CIT-DR supported the assessment framed by Ld. AO. Having heard rival submissions and after perusal of case records, the appeals are disposed-off as under. Assessee’s Appeal 3.1 The first issue in assessee’s appeal is disallowance of prior- period expenses for Rs.361.21 Crores. It is admitted position that this issue has remained to be adjudicated by Ld. CIT(A). Considering the same, this issue is restored back to the file of Ld. CIT(A) for adjudication with a direction to the assessee to substantiate its claim. This ground stand allowed for statistical purposes. 3.2 The second issue in assessee’s appeal is disallowance of electricity tax not paid by the assessee to state government. The same has been disallowed in terms of Sec.43B. The Ld. AR fairly conceded that the liability to pay the same would be on assessee licensee as evidenced by the letter of Chief Electrical Inspector dated 02.09.2018 clarifying the issue. However, Ld. AR submitted that the same should be allowed on payment or conversion. Accepting the same, the impugned disallowance as made by Ld. AO stand confirmed. However, Ld. AO would examine the deductibility of the same in the relevant year as submitted by Ld. AR before us. This issue stand dismissed. The assessee’s appeal stand partly allowed for statistical purposes. Revenue’s Appeal 4.1 The first issue in revenue’s appeal is allowance of extraordinary debits by Ld. CIT(A). However, it is admitted position that no such disallowance has been made in the assessment order and this issue does not arise out of the impugned order. Therefore, the corresponding grounds stand dismissed as infructuous. 4.2 The last issue is allowance of deferred revenue expenditure. The Ld. AR submitted that though Ld. CIT(A) has allowed the same as revenue expenditure, however, the issue may be restored back to the file of Ld. CIT(A) to bring on record correct factual matrix of the issue. The Ld. AR submitted that it is not clear as to whether such expenditure was capitalized by the assessee or not. The Ld. CIT-DR also concurred with the same. Considering the same, this issue is restored back to the file of Ld. CIT(A) for denovo adjudication after bringing on record correct facts of the issue. The assessee is directed to provide the requisite details and substantiate its claim. This ground stand allowed for statistical purposes. The appeal stands partly allowed for statistical purposes.

Both the appeals stand partly allowed for statistical purposes. Order pronounced on 21st December, 2022.