https://www.taxtmi.com/caselaws?id=165220 Depreciation in electricity tariff setting for a transition period was treated as a cost-allocation mechanism tied to replacement cost and the approved regulatory framework, not as a purely fair-life accounting exercise. The statutory scheme required the commission to follow the Sixth Schedule principles unless recorded reasons justified departure, and the applicable policy directions and tariff notifications had already fixed a higher depreciation basis. A reduction based on fair life of assets or absence of debt repayment was inconsistent with those notifications, weakened the transition package, and upset the legitimate expectation of private investors; the higher depreciation basis therefore had to be maintained. en-us Thu, 15 Feb 2007 00:00:00 +0530 Thu, 19 Jun 2014 16:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=165220 Depreciation in electricity tariff setting for a transition period was treated as a cost-allocation mechanism tied to replacement cost and the approved regulatory framework, not as a purely fair-life accounting exercise. The statutory scheme required the commission to follow the Sixth Schedule principles unless recorded reasons justified departure, and the applicable policy directions and tariff notifications had already fixed a higher depreciation basis. A reduction based on fair life of assets or absence of debt repayment was inconsistent with those notifications, weakened the transition package, and upset the legitimate expectation of private investors; the higher depreciation basis therefore had to be maintained. Case-Laws Income Tax Thu, 15 Feb 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=165220