https://www.taxtmi.com/caselaws?id=462226 The ITAT Indore ruled in favor of the assessee regarding the treatment of supply affording charges and electrification charges. The Revenue challenged the CIT(A)'s decision to delete additions made by the AO, who had treated these charges as revenue receipts rather than capital receipts. The ITAT held that since these charges were collected from consumers for capital expenditure incurred in establishing distribution system infrastructure, they constituted capital receipts. The assessee correctly capitalized these amounts and reduced them from fixed asset costs for depreciation purposes. The ITAT upheld the CIT(A)'s order, deciding against the Revenue. en-us Wed, 10 Apr 2024 00:00:00 +0530 Mon, 02 Jun 2025 14:58:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462226 The ITAT Indore ruled in favor of the assessee regarding the treatment of supply affording charges and electrification charges. The Revenue challenged the CIT(A)'s decision to delete additions made by the AO, who had treated these charges as revenue receipts rather than capital receipts. The ITAT held that since these charges were collected from consumers for capital expenditure incurred in establishing distribution system infrastructure, they constituted capital receipts. The assessee correctly capitalized these amounts and reduced them from fixed asset costs for depreciation purposes. The ITAT upheld the CIT(A)'s order, deciding against the Revenue. Case-Laws Income Tax Wed, 10 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462226