M/S. THDC INDIA LIMITED,RISHIKESH vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX, DEHRADUN

ITA 31/DDN/2022Status: DisposedITAT Dehradun18 February 2026AY 2017-18Bench: SHRI YOGESH KUMAR U.S (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)45 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that capacity charges are eligible for deduction under Section 80-IA as they have a direct nexus with the business of power generation and are in accordance with UERC regulations. The Tribunal also found that the PCIT erred in invoking Section 263 jurisdiction.

What were the facts?

The assessee claimed deduction under Section 80-IA on consultancy income and capacity charges. The PCIT initiated revision proceedings under Section 263, holding the assessment order erroneous and prejudicial to revenue regarding these deductions and the computation of late payment surcharge.

What were the issues?

Whether capacity charges are eligible for deduction under Section 80-IA and if the PCIT correctly invoked revisionary powers under Section 263.

Which sections of the Income-tax Act were involved?

Section 263,Section 80-IA,Section 143(3)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DEHRADUN “DB” BENCH: DEHRADUN

Before: SHRI YOGESH KUMAR U.S & SHRI MANISH AGARWAL

For Appellant: Shri Jeetan Nagpal, CA, Shri Sanjay Arora, CA &, Ms. Pallavi, CA
For Respondent: Ms. Poonam Sharma, CIT DR
Hearing: 08.12.2025Pronounced: 18.02.2026

PER MANISH AGARWAL, AM : The present appeal is filed by the assessee against the order dated 27.03.2022 by Ld. Pr. Commissioner of Income Tax, Dehradun [“Ld. PCIT”] passed u/s 263 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 30.12.2019 passed u/s 143(3) of the Act pertaining to Assessment Year 2017-18. 2. Brief facts of the case are that the assessee is a joint venture company of Government of India and Government of Uttar Pradesh and engaged in the business of generation and supply of hydro- electric as well as wind power and also engaged in construction of hydro power plants. The return

The order continues below.

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