JOINT COMMISSIONER OF INCOME TAX (OSD), CENTRAL CIRCLE-20, DELHI vs. M B POWER (MADHYA PRADESH) LTD., DELHI

ITA 267/DEL/2024Status: DisposedITAT Delhi19 December 2025AY 2021-22Bench: SHRI SUDHIR KUMAR (Judicial Member), SHRI MANISH AGARWAL, ACCOUNTANT MEMBER | ITA No.3850/Del/2023 [Assessment Year : 2018-19] | |---|| | M.B.Power (Madhya Pradesh) Ltd., 239, Okhla Industrial Estate, Nehru Place, Delhi-110019. PAN-AAFCM6698A **APPELLANT** | VS DCIT, Central Circle-2, Gurgaon **RESPONDENT** | | ITA No.3874, 3870, 3923/Del/2023 [Assessment Year : 2016-17, 2017-18, 2018-19] | |---|| | DCIT, Central Circle-20, Delhi **APPELLANT** | VS M.B.Power (Madhya Pradesh) Ltd., 239, Okhl66 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to delete the disallowance of depreciation. The Tribunal found no change in circumstances from prior assessment years where similar disallowances were not made, and the CIT(A) had already ruled in favor of the assessee.

What were the facts?

The assessee company, engaged in power generation, faced scrutiny regarding payments made to Lanco Infratech Ltd. for its power plant. The Assessing Officer (AO) alleged that sub-contractors engaged by Lanco had received bogus payments, leading to a disallowance of depreciation on the power plant's cost.

What were the issues?

Whether depreciation on the power plant's cost, which included payments alleged to be bogus, was rightly disallowed by the AO. The issue also involved the validity of using statements recorded during search operations to disallow depreciation.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153A,Section 132(4)

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IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “E” BENCH: NEW DELHI BEFORE SHRI SUDHIR KUMAR, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER [Assessment Year : 2018-19] Central Circle-2, Estate, Nehru Place, Gurgaon Delhi -110019. PAN-AAFCM6698A APPELLANT RESPONDENT

ITA No.3874, 3870, 3923/Del/2023 [Assessment Year : 2016-17, 2017-18, 2018-19] Central Circle-20, 239, Okhla Industrial Estate, Delhi Nehru Place, Delhi -110019. PAN-AAFCM6698A APPELLANT RESPONDENT [Assessment Year : 2021-22] Central Circle-20, 239, Okhla Industrial Estate, Delhi Nehru Place, Delhi -110019. PAN-AAFCM6698A APPELLANT RESPONDENT [Assessment Year : 2021-22] Central Circle-20, Estate, Nehru Place, Delhi Delhi -110019. PAN-AAFCM6698A APPELLANT RESPONDENT Appellant by Shri Satyan Sethi, Adv. Shri Vikrant Suri, Adv. Shri A.T.Panda, Adv. Shri Rajiv Goyal, Adv. Shri Anshul Mishra, Adv. & Ms. Namisha Gupta, Adv. Respondent by Ms. Si

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