High Court affirms Tribunal's decisions in favor of assessee, appeal dismissed, no costs awarded.

The High Court of Kerala upheld the Tribunal's decisions and previous judgments, ruling in favor of the assessee on all issues raised in the appeal. The appeal was dismissed with no order as to costs.

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Issues involved:
1. Availing 50% of depreciation unavailed under Section 32(1)(iia) in the previous year.
2. Correctness of the order of Tribunal in setting aside the disallowance of balance investment of the assessee.
3. Availing deduction under Section 80-IA for the DG Power Generation Units.

Issue 1: Availing 50% of depreciation unavailed under Section 32(1)(iia) in the previous year:
The appeal concerned whether the balance 50% of depreciation unavailed under Section 32(1)(iia) in the previous year could be allowed in the subsequent year. The Tribunal held that there is no restriction in the Income Tax Act preventing the balance of additional depreciation from being availed in the subsequent year. The Senior Counsel for the assessee relied on judgments from Madras and Karnataka High Courts to support this view. The clarificatory amendment made to Section 32(1)(ii) with effect from 01.10.2016 was also cited in favor of the assessee. The Court agreed with the Tribunal's interpretation and the decisions of the High Courts, answering the questions against the Revenue and in favor of the assessee.

Issue 2: Correctness of the order of Tribunal in setting aside the disallowance of balance investment of the assessee:
The Court reframed the question to focus on whether the Tribunal was right in setting aside the Assessing Officer's disallowance of the balance investment of the appellant in Gujarat Perstop Electronics Ltd. The Court referred to a previous judgment in a similar matter from the Assessment Year 2002-03 involving the same parties. Following the precedent set in the earlier judgment, the Court answered the reframed question in favor of the assessee and against the Revenue.

Issue 3: Availing deduction under Section 80-IA for the DG Power Generation Units:
The substantial questions of law raised in this appeal were similar to those raised by the Revenue in a previous case for the Assessment Year 2002-03. The Court noted that the appeals filed by the Revenue in the earlier case were dismissed, and the reasoning and conclusion recorded by the Court in that matter were applicable to the present case. By following the previous judgment, the Court answered the substantial questions of law raised regarding the DG Power Generation Units in favor of the assessee and against the Revenue.

In conclusion, the High Court of Kerala upheld the decisions of the Tribunal and previous judgments, ruling in favor of the assessee on all the issues raised in the appeal. The appeal was dismissed with no order as to costs.

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