THE DY CIT1 (1), INDORE vs. M/S M.P. PASCHIM KSHETRA VIDYUT VITARAN CO. LTD., INDORE

ITA 61/IND/2023Status: DisposedITAT Indore10 April 2024AY 2011-12Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)23 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that these charges collected from consumers for infrastructure development are capital receipts. They are to be capitalized and reduced from the cost of fixed assets for depreciation purposes, upholding the CIT(A)'s decision.

What were the facts?

The assessee, an electricity distribution company, collected 'supply affording charges' and 'electrification charges' from customers for new connections. The Assessing Officer treated these as revenue receipts, while the assessee claimed them as capital receipts to reduce the cost of fixed assets.

What were the issues?

Whether 'supply affording charges' and 'electrification charges' collected by an electricity distribution company are capital or revenue receipts.

Which sections of the Income-tax Act were involved?

Section 43(1)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI

For Appellant: Shri Apurva Mehta & Shri Rajesh
For Respondent: Ms. Ila Parmar, CIT-DR
Hearing: 02.04.2024Pronounced: 10.04.2024

Per Bench :

These are four appeals by the revenue for Assessment Years 2011-12 to 2013-14 & 2007-08 and one cross appeal by the assesse for Assessment Year 2007-08 directed against the four separate orders for Commissioner of Income Tax (Appeal), National Faceless Appeal Centre(NFAC) Delhi dated 26.12.2022, 26.12.2022, 26.12.2022 & 28.01.2023 respectively. The

The order continues below.

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