AI Drafter 
TaxTMI 
TaxTMI 
2015 (10) TMI 1899
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....in law, the Ld. CIT(A) erred in not appreciating the facts of the case with respect to section 80I which was introduced by the Finance (No.2) Act, 1991 w.e.f. 1.4.1991. In this section legislature included generation of power or transmission or distribution of power also. If generation of power could be placed in the ambit of the term "article" there was no necessity of specifying separately the same in the section. Further, power generation falls within the meaning of the word "article" is nothing but the overstraining of the language beyond its normal and ordinary meaning. The expression "manufacture" and "Produce" are normally associated with movable articles or goods, big and small but they are never employed to denote the activity of t....
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....s that the additional ground raised by the Revenue is purely legal ground and does not require any investigation of fresh facts. Ld. Counsel for the assessee also expressed no objection with regard to admission of this ground. Keeping in view the aforesaid facts and circumstances of the case and relying upon the judgment of Hon'ble Supreme Court in case of National Thermal Power Co. Ltd. vs CIT 229 ITR 383 (SC) , we admit the additional ground filed by the Revenue. 5. During course of hearing, Learned Departmental Representative stated that with regard to both of the grounds raised by the Revenue with the appeal memo, he would simply rely upon order of the AO, whereas, the additional ground is to be contested seriously by the Revenue....
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....#39;ble Chennai Bench in case of ACIT vs. M. Satishkumar [2013] 33 taxmann.com 396 (Chennai - Trib.). 8. We have considered the submissions made by both the sides and gone through the orders of lower authorities as well as material placed before us for our consideration. The brief facts are that assessee was having a wind mill division. The claim of depreciation made by the assessee in the return of income included depreciation of wind mill @ 80% and additional depreciation @ 20% as per Section 32(1)(iia) of the Income Tax Act, 1961. The assessee's claim of additional depreciation was disallowed by the Assessing Officer on the ground that additional depreciation was allowable in the case of any new machinery or plant installed after ....
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....rds the contention of A.O. that electricity was not an "article or thing" the assessee relied upon following decisions, to show that this contention was erroneous: - CIT vs Geo Tech Foundations & Constructions 241 ITR 90 (Ker) - Airfreight Ltd. vs. State of Karnataka (1999) 6 SCC 561 - Aspinwall and Co. Ltd. vs. CIT 251 ITR 323 - Gangadhar Narasingdas Agarwal vs. Union of India (1967) 1 MLJ 197 - Southern Petrochemical Industries Co. Ltd. vs. Electricity Inspector and E.T.I.O. 2007 (3) CTC 273 (SC) - Commissioner of Sales Tax vs. Madhya Pradesh Electricity Board (1969) 1 SCC 200 - State of A.P. vs. National Thermal Power Corporation Ltd, (2002) 5 SCC 203 By relying on a....
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....held that the electricity was capable of abstraction, consumption and use which, if done dishonestly was punishable u/s 39 of the Indian Electricity Act, 1910. It was held that electric energy could be transmitted, transferred, delivered, stored and possessed, etc., in the same way as any other movable property. It was held that electricity was thus "goods" within the meaning of Sales Tax Act. Therefore, in view of the decisions relied upon by the Ld Counsel, it can be said that the electricity generated by the assessee amounts to production of an "article or thing" within the meaning of section 32(1)(iia) of the Act and therefore, the assessee would be entitled for additional depreciation @ 20%. 8.2. It is further seen by us that Assess....
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....same definition if applied to Income Tax makes the assessee eligible for its claim of depreciation u/s. 32(1)(iia). 5. The submissions and arguments of the assessee were duly considered and were found to be substantial to qualify production of electricity as manufacture or production of articles or things and hence is eligible for additional depreciation u/s.32(1)(iia)." 8.3. Further, it is observed by us that this issue has been decided in favour of assessee in many judgments passed by the Tribunal also, as were relied upon by the ld. Counsel, during course of hearing. We can take support from the judgments of ACIT vs. M. Satishkumar (supra), wherein similar claim has been allowed by the Bench after considering the amendment ma....