DERC. 22. In Puna Electricity Supply Co. Ltd. v. CIT

56 ITR 521Supreme Court of India1965#6692 most cited

What is DERC. 22. In Puna Electricity Supply Co. Ltd. v. CIT authority for?

Profits arising from statutory obligations, such as setting apart amounts for consumer rebates, are distinct from commercial profits and are governed by separate enactments. Such 'clear profits' are determined by statute, not commercial principles.

17

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2018 to 2025.

Also referred to as

Puna Electricity Supply Co. Ltd v CIT · 56 ITR 521 · SC 1965 · statutory profits · commercial profits · clear profits · consumer benefit reserve · tariff fixation · DERC · rebate

Sections most often in play

Section 249

Issues it is cited on

section 2(17)section 2(c)interest u/s 234csection 47deduction u/s 80iabeneficial ownersection 234cinterest u/s 234bsection 57section 80iabook profitssection 115j

Judgments citing DERC. 22. In Puna Electricity Supply Co. Ltd. v. CIT

The Good Shepherd Education Society, Bengaluru vs. ITO, Exemptions Ward-2, Bengaluru

In the result, appeal filed by the assessee is allowed for statistical purpose

ITA 128/BANG/2025[2018-19]Status: DisposedITAT Bangalore25 Apr 2025AY 2018-19

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubeyassessment Year : 2018-19

For Appellant: Shri. Gokul, AdvocateFor Respondent: Shri. Subramanian S, JCIT(DR)(ITAT), Bangalore
Section 249

…e scheme of Income Tax Act. In support of his arguments, he relied on the following judgments: a. CIT v. ShoorjiVallabhdas& Co. [1962] 46 ITR 144 (SC) b. Godhra Electricity Co. Ltd v. CIT [1997] 225 ITR 746 (SC) c. Poona Electric Supply Co. Ltd v. CIT [1965] 56 ITR 521 (SC) d. CIT v. Chamanlal Mangaldas& Co. [1960] 39 ITR 8 (SC) e. CIT v Harivallabhadas Kalidas & Co. [1960] 39 ITR 1 (SC) f. CIT v Virtual Soft Systems Ltd. [2018] 404 ITR 409 (SC) Page 3 of 4 g. Miss Dhun Dadabhoy Kapadia v CIT [1967] 63 ITR 651 (SC) h. CIT v. Bokaro Steel Ltd. [1999] 236 ITR 315 (SC) 4. On the other hand, learned DR relied on th…

ACIT, Circle- 25(1), New Delhi vs. Tata Power Delhi Distribution Ltd. (Formely Known As North Delhi Power Ltd.), New Delhi

In the result, both the appeals of the assessee are partly allowed for statistical purposes and both the appeals of the revenue are dismissed

ITA 4454/DEL/2017[2012-13]Status: DisposedITAT Delhi05 Oct 2023AY 2012-13

Bench: Shri Kul Bharat & Shri M. Balaganesh

For Appellant: Ms. Shashi M. Kapila, AdvFor Respondent: Sh. Subhra Jyoti Chakraborty, CIT DR
Section 115JSection 143(3)Section 801A

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.4097 & 4098/Del/2017 (Assessment Years: 2011-12 & 2012-13) M/s. Tata Power Delhi Distribution Vs. Addl. CIT, Ltd, NDPL House, Hudson Lines, Range-16, Kingsway Camp, Delhi- 110009 New Delhi (Appellant) (Respondent) PAN: AABCN6808R ITA No.4453 & 4454/Del/2017 (Assessment Years: 2011-12 & 2012-13) Addl. CIT, Vs. M/s. Tata Power Delhi Distribution Range-16, Ltd, NDPL House, Hudson Lines, New Delhi Kingsway Camp, Delhi- 110009 (Appellant) (Respondent) PAN: AABCN6808R Ass…

ACIT, Circle- 25(1), New Delhi vs. Tata Power Delhi Distribution Ltd. (Formely Known As North Delhi Power Ltd.), New Delhi

In the result, both the appeals of the assessee are partly allowed for statistical purposes and both the appeals of the revenue are dismissed

ITA 4453/DEL/2017[2011-12]Status: DisposedITAT Delhi05 Oct 2023AY 2011-12

Bench: Shri Kul Bharat & Shri M. Balaganesh

For Appellant: Ms. Shashi M. Kapila, AdvFor Respondent: Sh. Subhra Jyoti Chakraborty, CIT DR
Section 115JSection 143(3)Section 801A

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.4097 & 4098/Del/2017 (Assessment Years: 2011-12 & 2012-13) M/s. Tata Power Delhi Distribution Vs. Addl. CIT, Ltd, NDPL House, Hudson Lines, Range-16, Kingsway Camp, Delhi- 110009 New Delhi (Appellant) (Respondent) PAN: AABCN6808R ITA No.4453 & 4454/Del/2017 (Assessment Years: 2011-12 & 2012-13) Addl. CIT, Vs. M/s. Tata Power Delhi Distribution Range-16, Ltd, NDPL House, Hudson Lines, New Delhi Kingsway Camp, Delhi- 110009 (Appellant) (Respondent) PAN: AABCN6808R Ass…

Tata Power Delhi Distribution Ltd., Delhi vs. DCIT, Circle-25(1), Delhi

In the result, both the appeals of the assessee are partly allowed for statistical purposes and both the appeals of the revenue are dismissed

ITA 4098/DEL/2017[2012-13]Status: DisposedITAT Delhi05 Oct 2023AY 2012-13

Bench: Shri Kul Bharat & Shri M. Balaganesh

For Appellant: Ms. Shashi M. Kapila, AdvFor Respondent: Sh. Subhra Jyoti Chakraborty, CIT DR
Section 115JSection 143(3)Section 801A

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.4097 & 4098/Del/2017 (Assessment Years: 2011-12 & 2012-13) M/s. Tata Power Delhi Distribution Vs. Addl. CIT, Ltd, NDPL House, Hudson Lines, Range-16, Kingsway Camp, Delhi- 110009 New Delhi (Appellant) (Respondent) PAN: AABCN6808R ITA No.4453 & 4454/Del/2017 (Assessment Years: 2011-12 & 2012-13) Addl. CIT, Vs. M/s. Tata Power Delhi Distribution Range-16, Ltd, NDPL House, Hudson Lines, New Delhi Kingsway Camp, Delhi- 110009 (Appellant) (Respondent) PAN: AABCN6808R Ass…

Tata Power Delhi Distribution Ltd., Delhi vs. DCIT, Circle-25(1), Delhi

In the result, both the appeals of the assessee are partly allowed for statistical purposes and both the appeals of the revenue are dismissed

ITA 4097/DEL/2017[2011-12]Status: DisposedITAT Delhi05 Oct 2023AY 2011-12

Bench: Shri Kul Bharat & Shri M. Balaganesh

For Appellant: Ms. Shashi M. Kapila, AdvFor Respondent: Sh. Subhra Jyoti Chakraborty, CIT DR
Section 115JSection 143(3)Section 801A

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.4097 & 4098/Del/2017 (Assessment Years: 2011-12 & 2012-13) M/s. Tata Power Delhi Distribution Vs. Addl. CIT, Ltd, NDPL House, Hudson Lines, Range-16, Kingsway Camp, Delhi- 110009 New Delhi (Appellant) (Respondent) PAN: AABCN6808R ITA No.4453 & 4454/Del/2017 (Assessment Years: 2011-12 & 2012-13) Addl. CIT, Vs. M/s. Tata Power Delhi Distribution Range-16, Ltd, NDPL House, Hudson Lines, New Delhi Kingsway Camp, Delhi- 110009 (Appellant) (Respondent) PAN: AABCN6808R Ass…

DCIT, Cirde-25(1), New Delhi vs. Tata Power Delhi Distribution Ltd

The appeals of the assessee are allowed whereas those of the revenue are dismissed

ITA/186/2020HC Delhi11 Mar 2020

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MR. JUSTICE SANJEEV NARULA

For Respondent: Rs.78,91,50,000 and (b) disallowance under
Section 143(3)Section 260Section 80

…date that this 50% efficiency gain shall be reckoned as revenue for the. purpose of tariff fixation and the assessee is under obligation to follow the mechanism of fixation of tariff by the DERC. 22. In Puna Electricity Supply Company Ltd. vs. CIT (1965) 56 ITR 521 (SC), the Hon‟ble Apex Court considered a similar situation where the licensee like the assessee was obligation to set apart some amount and transfer it to the consumer benefit reserve account which represents a rebate to the customers of the excess amount collected from them. Hon'ble Apex Court held that there are two types profits in such…

ACIT, New Delhi vs. M/S. North Delhi Power Ltd., Delhi

In the result, all the appeals of the assessee in ITA No 2784/DEL/2013, and ITA

ITA 5676/DEL/2013[2009-10]Status: DisposedITAT Delhi14 Jun 2019AY 2009-10

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] Tata Power Delhi Distribution Ltd Vs. The Addl. C.I.T [Earlier Known As North Delhi Power Ltd Range – 13, Ndpl House, Hudson Line, New Delhi Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] The A.C.I.T Vs. Tata Power Delhi Distribution Ltd Range – 13, [Earlier Known As North Delhi Power Ltd New Delhi Ndpl House, Hudson Line, Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [Appellant] [Respondent]

For Appellant: Shri S.D. Kapila, AdvFor Respondent: Ms.Pramita M. Biswas, CIT- DR
Section 115JSection 2(17)Section 5Section 69

…in its mandate that this 50% efficiency gain shall be reckoned as revenue for the purpose of tariff fixation and the assessee is under obligation to follow the mechanism of fixation of tariff by the DERC. 22. In Puna Electricity Supply Co. Ltd. Vs CIT (1965) 56 ITR 521 (SC), the Hon'ble Apex Court considered a similar situation where the licensee like the assessee was under the obligation to set apart some amount and transfer it to the consumer benefit reserve account which represents a rebate to the customers of the excess amount collected from them. Hon'ble Apex Court held that there are two types of profits i…

Tata Power Delhi Distributor Ltd., New Delhi vs. ACIT, New Delhi

In the result, all the appeals of the assessee in ITA No 2784/DEL/2013, and ITA

ITA 5368/DEL/2013[2009-10]Status: DisposedITAT Delhi14 Jun 2019AY 2009-10

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] Tata Power Delhi Distribution Ltd Vs. The Addl. C.I.T [Earlier Known As North Delhi Power Ltd Range – 13, Ndpl House, Hudson Line, New Delhi Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] The A.C.I.T Vs. Tata Power Delhi Distribution Ltd Range – 13, [Earlier Known As North Delhi Power Ltd New Delhi Ndpl House, Hudson Line, Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [Appellant] [Respondent]

For Appellant: Shri S.D. Kapila, AdvFor Respondent: Ms.Pramita M. Biswas, CIT- DR
Section 115JSection 2(17)Section 5Section 69

…in its mandate that this 50% efficiency gain shall be reckoned as revenue for the purpose of tariff fixation and the assessee is under obligation to follow the mechanism of fixation of tariff by the DERC. 22. In Puna Electricity Supply Co. Ltd. Vs CIT (1965) 56 ITR 521 (SC), the Hon'ble Apex Court considered a similar situation where the licensee like the assessee was under the obligation to set apart some amount and transfer it to the consumer benefit reserve account which represents a rebate to the customers of the excess amount collected from them. Hon'ble Apex Court held that there are two types of profits i…

ACIT, New Delhi vs. M/S. North Delhi Power Ltd. (Now Tata Power Delhi Distribution Ltd.), Delhi

In the result, all the appeals of the assessee in ITA No 2784/DEL/2013, and ITA

ITA 4055/DEL/2013[2008-09]Status: DisposedITAT Delhi14 Jun 2019AY 2008-09

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] Tata Power Delhi Distribution Ltd Vs. The Addl. C.I.T [Earlier Known As North Delhi Power Ltd Range – 13, Ndpl House, Hudson Line, New Delhi Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] The A.C.I.T Vs. Tata Power Delhi Distribution Ltd Range – 13, [Earlier Known As North Delhi Power Ltd New Delhi Ndpl House, Hudson Line, Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [Appellant] [Respondent]

For Appellant: Shri S.D. Kapila, AdvFor Respondent: Ms.Pramita M. Biswas, CIT- DR
Section 115JSection 2(17)Section 5Section 69

…in its mandate that this 50% efficiency gain shall be reckoned as revenue for the purpose of tariff fixation and the assessee is under obligation to follow the mechanism of fixation of tariff by the DERC. 22. In Puna Electricity Supply Co. Ltd. Vs CIT (1965) 56 ITR 521 (SC), the Hon'ble Apex Court considered a similar situation where the licensee like the assessee was under the obligation to set apart some amount and transfer it to the consumer benefit reserve account which represents a rebate to the customers of the excess amount collected from them. Hon'ble Apex Court held that there are two types of profits i…

ACIT, New Delhi vs. M/S. North Delhi Power Ltd. (Now Tata Power Delhi Distribution Ltd.), Delhi

In the result, all the appeals of the assessee in ITA No 2784/DEL/2013, and ITA

ITA 4054/DEL/2013[2007-08]Status: DisposedITAT Delhi14 Jun 2019AY 2007-08

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] Tata Power Delhi Distribution Ltd Vs. The Addl. C.I.T [Earlier Known As North Delhi Power Ltd Range – 13, Ndpl House, Hudson Line, New Delhi Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] The A.C.I.T Vs. Tata Power Delhi Distribution Ltd Range – 13, [Earlier Known As North Delhi Power Ltd New Delhi Ndpl House, Hudson Line, Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [Appellant] [Respondent]

For Appellant: Shri S.D. Kapila, AdvFor Respondent: Ms.Pramita M. Biswas, CIT- DR
Section 115JSection 2(17)Section 5Section 69

…in its mandate that this 50% efficiency gain shall be reckoned as revenue for the purpose of tariff fixation and the assessee is under obligation to follow the mechanism of fixation of tariff by the DERC. 22. In Puna Electricity Supply Co. Ltd. Vs CIT (1965) 56 ITR 521 (SC), the Hon'ble Apex Court considered a similar situation where the licensee like the assessee was under the obligation to set apart some amount and transfer it to the consumer benefit reserve account which represents a rebate to the customers of the excess amount collected from them. Hon'ble Apex Court held that there are two types of profits i…

M/S Tata Power Delhi Distribution Ltd., Delhi vs. Addl. CIT, New Delhi

In the result, all the appeals of the assessee in ITA No 2784/DEL/2013, and ITA

ITA 2785/DEL/2013[2007-08]Status: DisposedITAT Delhi14 Jun 2019AY 2007-08

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] Tata Power Delhi Distribution Ltd Vs. The Addl. C.I.T [Earlier Known As North Delhi Power Ltd Range – 13, Ndpl House, Hudson Line, New Delhi Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] The A.C.I.T Vs. Tata Power Delhi Distribution Ltd Range – 13, [Earlier Known As North Delhi Power Ltd New Delhi Ndpl House, Hudson Line, Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [Appellant] [Respondent]

For Appellant: Shri S.D. Kapila, AdvFor Respondent: Ms.Pramita M. Biswas, CIT- DR
Section 115JSection 2(17)Section 5Section 69

…in its mandate that this 50% efficiency gain shall be reckoned as revenue for the purpose of tariff fixation and the assessee is under obligation to follow the mechanism of fixation of tariff by the DERC. 22. In Puna Electricity Supply Co. Ltd. Vs CIT (1965) 56 ITR 521 (SC), the Hon'ble Apex Court considered a similar situation where the licensee like the assessee was under the obligation to set apart some amount and transfer it to the consumer benefit reserve account which represents a rebate to the customers of the excess amount collected from them. Hon'ble Apex Court held that there are two types of profits i…

M/S Tata Power Delhi Distribution Ltd., Delhi vs. Addl. CIT, New Delhi

In the result, all the appeals of the assessee in ITA No 2784/DEL/2013, and ITA

ITA 2784/DEL/2013[2008-09]Status: DisposedITAT Delhi14 Jun 2019AY 2008-09

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] Tata Power Delhi Distribution Ltd Vs. The Addl. C.I.T [Earlier Known As North Delhi Power Ltd Range – 13, Ndpl House, Hudson Line, New Delhi Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [A.Y 2008-09] & [A.Y 2007-08] & [A.Y 2009-10] The A.C.I.T Vs. Tata Power Delhi Distribution Ltd Range – 13, [Earlier Known As North Delhi Power Ltd New Delhi Ndpl House, Hudson Line, Kingsway Camp, New Delhi Pan No: Aabcn 6808 R [Appellant] [Respondent]

For Appellant: Shri S.D. Kapila, AdvFor Respondent: Ms.Pramita M. Biswas, CIT- DR
Section 115JSection 2(17)Section 5Section 69

…in its mandate that this 50% efficiency gain shall be reckoned as revenue for the purpose of tariff fixation and the assessee is under obligation to follow the mechanism of fixation of tariff by the DERC. 22. In Puna Electricity Supply Co. Ltd. Vs CIT (1965) 56 ITR 521 (SC), the Hon'ble Apex Court considered a similar situation where the licensee like the assessee was under the obligation to set apart some amount and transfer it to the consumer benefit reserve account which represents a rebate to the customers of the excess amount collected from them. Hon'ble Apex Court held that there are two types of profits i…

DCIT, New Delhi vs. M/S. North Delhi Power Ltd., Delhi

In the result, appeal of the assessee in ITA No

ITA 31/DEL/2014[2006-07]Status: DisposedITAT Delhi29 Oct 2018AY 2006-07

Bench: Shri G.D. Agarwal & Shri K.Narasimha Charyassessment Year: 2006-07 North Delhi Power Ltd., Vs Acit, Range – 13, Grid Sub Station Building, Delhi Hudson Lines, Kingsway Camp, New Delhi Pan: Aabcn6808R & Ita No.31/Del/2014 Assessment Year: 2006-07 Dcit, Range – 13, Vs North Delhi Power Ltd., Delhi Grid Sub Station Building, Hudson Lines, Kingsway Camp, New Delhi Pan: Aabcn6808R Appellant Respondent Assessee By Shri S.D. Kapila,Advocate Shri R.R. Maurya, Advocate Shri Pravesh Sharma, Advocate Revenue By Ms Shefali Swaroop, Cit Dr Date Of Hearing 8.10.2018 Date Of Pronouncement 29.10.2018

Section 143(3)Section 14A

…in its mandate that this 50% efficiency gain shall be reckoned as revenue for the purpose of tariff fixation and the assessee is under obligation to follow the mechanism of fixation of tariff by the DERC. 22. In Puna Electricity Supply Co. Ltd. Vs CIT (1965) 56 ITR 521 (SC), the Hon’ble Apex Court considered a similar situation where the licensee like the assessee was under the obligation to set apart some amount and transfer it to the consumer benefit reserve account which represents a rebate to the customers of the excess amount collected from them. Hon’ble Apex Court held that there are two types of profits i…

DCIT, New Delhi vs. M/S North Delhi Power Ltd., New Delhi

In the result, appeal of the assessee in ITA No

ITA 5026/DEL/2010[2006-07]Status: DisposedITAT Delhi29 Oct 2018AY 2006-07

Bench: Shri G.D. Agarwal & Shri K.Narasimha Charyassessment Year: 2006-07 North Delhi Power Ltd., Vs Acit, Range – 13, Grid Sub Station Building, Delhi Hudson Lines, Kingsway Camp, New Delhi Pan: Aabcn6808R & Ita No.31/Del/2014 Assessment Year: 2006-07 Dcit, Range – 13, Vs North Delhi Power Ltd., Delhi Grid Sub Station Building, Hudson Lines, Kingsway Camp, New Delhi Pan: Aabcn6808R Appellant Respondent Assessee By Shri S.D. Kapila,Advocate Shri R.R. Maurya, Advocate Shri Pravesh Sharma, Advocate Revenue By Ms Shefali Swaroop, Cit Dr Date Of Hearing 8.10.2018 Date Of Pronouncement 29.10.2018

Section 143(3)Section 14A

…in its mandate that this 50% efficiency gain shall be reckoned as revenue for the purpose of tariff fixation and the assessee is under obligation to follow the mechanism of fixation of tariff by the DERC. 22. In Puna Electricity Supply Co. Ltd. Vs CIT (1965) 56 ITR 521 (SC), the Hon’ble Apex Court considered a similar situation where the licensee like the assessee was under the obligation to set apart some amount and transfer it to the consumer benefit reserve account which represents a rebate to the customers of the excess amount collected from them. Hon’ble Apex Court held that there are two types of profits i…

M/S North Delhi Power Limited, New Delhi vs. ACIT, Delhi

In the result, appeal of the assessee in ITA No

ITA 4848/DEL/2010[2006-07]Status: DisposedITAT Delhi29 Oct 2018AY 2006-07

Bench: Shri G.D. Agarwal & Shri K.Narasimha Charyassessment Year: 2006-07 North Delhi Power Ltd., Vs Acit, Range – 13, Grid Sub Station Building, Delhi Hudson Lines, Kingsway Camp, New Delhi Pan: Aabcn6808R & Ita No.31/Del/2014 Assessment Year: 2006-07 Dcit, Range – 13, Vs North Delhi Power Ltd., Delhi Grid Sub Station Building, Hudson Lines, Kingsway Camp, New Delhi Pan: Aabcn6808R Appellant Respondent Assessee By Shri S.D. Kapila,Advocate Shri R.R. Maurya, Advocate Shri Pravesh Sharma, Advocate Revenue By Ms Shefali Swaroop, Cit Dr Date Of Hearing 8.10.2018 Date Of Pronouncement 29.10.2018

Section 143(3)Section 14A

…in its mandate that this 50% efficiency gain shall be reckoned as revenue for the purpose of tariff fixation and the assessee is under obligation to follow the mechanism of fixation of tariff by the DERC. 22. In Puna Electricity Supply Co. Ltd. Vs CIT (1965) 56 ITR 521 (SC), the Hon’ble Apex Court considered a similar situation where the licensee like the assessee was under the obligation to set apart some amount and transfer it to the consumer benefit reserve account which represents a rebate to the customers of the excess amount collected from them. Hon’ble Apex Court held that there are two types of profits i…

The Pr. Commissioner of Income Tax (4) vs. M/S Chamundi Winery and Distillery

ITA/172/2017HC Karnataka25 Sept 2018

Bench: S.SUJATHA,VINEET KOTHARI

Section 260

…ysis of the same has also been given above at the appropriate places. 57. The other case law which requires a mention here from the side of the Respondent Assessee is one in the case of Poona Electric Supply Co.Ltd. Vs. Commissioner of Income-Tax [1965]56 ITR 521(SC) in which case, the Assessee, an Electric Supply Company under the statutory Regulations made provisions for distributing or setting apart for distribution to the consumers, a part of excess over clear profits to be refunded to the consumers by way of Date of Judgment 25-09-2018 I.T.A.No.155/2016 and connected matters…

Pr. Commissioner of Income Tax vs. M/S Chamundi Winery and Distillery

ITA/467/2015HC Karnataka25 Sept 2018

Bench: S.SUJATHA,VINEET KOTHARI

Section 260

…ysis of the same has also been given above at the appropriate places. 57. The other case law which requires a mention here from the side of the Respondent Assessee is one in the case of Poona Electric Supply Co.Ltd. Vs. Commissioner of Income-Tax [1965]56 ITR 521(SC) in which case, the Assessee, an Electric Supply Company under the statutory Regulations made provisions for distributing or setting apart for distribution to the consumers, a part of excess over clear profits to be refunded to the consumers by way of Date of Judgment 25-09-2018 I.T.A.No.155/2016 and connected matters…