MAHESWARI MINING & ENERGY PRIVATE LIMITED ,HYDERABAD vs. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-16(2), HYDERABAD

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ITA 1220/HYD/2019Status: DisposedITAT Hyderabad01 April 2024AY 2016-17Bench: SHRI LAXMI PRASAD SAHU (Accountant Member), SHRI K. NARASIMHA CHARY (Judicial Member)76 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that Section 32AD is a beneficial provision and should be interpreted liberally in favour of the assessee. The notification specifying backward areas does not override the provisions of Section 32AD(1) and its effective date does not preclude the assessee from claiming the deduction.

What were the facts?

The assessee claimed a deduction of Rs. 13,02,71,498 under Section 32AD for setting up power plants in backward areas. The Assessing Officer disallowed this claim, stating the notification specifying backward areas was effective only from July 20, 2016, after the machinery was installed.

What were the issues?

Whether the assessee is eligible for deduction under Section 32AD when the notification specifying backward areas was issued after the installation of assets but within the period prescribed by the section.

Which sections of the Income-tax Act were involved?

Section 32AD

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Income Tax Appellate Tribunal, HYDERABAD BENCHES “A”: HYDERABAD

Before: SHRI LAXMI PRASAD SAHU & SHRI K. NARASIMHA CHARY

For Appellant: Shri Y. Ratnamkar&
For Respondent: Shri Y.V.S.T. Sai
Hearing: 21/04/2022

आदेश/ORDER

Per MANJUNATHA, G. A.M

1.

In accordance with the view expressed by the third Member, Hon'ble Vice-President, Hyderabad in the above case vide order dated 1/04/2024, we agree with the order proposed by the learned JM that the assessee is entitled to deduction u/s 32AD of the I.T. Act.

2.

In the result, appeal of the assessee is allowed.

:- 76 -: M/s Maheswari Mining & Energy Pvt. Ltd., Hyderabad.

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