TaxTMI 
TaxTMI 
2016 (1) TMI 351
X X X X Extracts X X X X
X X X X Extracts X X X X
....posed of one after the other. ITA No. 514/LKW/2015 (AY 2007-08) 2. In this appeal, the Revenue has assailed the order of Ld. CIT(A) on solitary ground that the CIT(A) has erred in law and on facts in allowing the relief of Rs. 46,39,905/- by way of giving direction to the AO that while computing the tax, first give credit of MAT and thereafter charge the surcharge & education cess without appreciating the facts and merits of the case brought on record by the AO in the order. 3. The facts in brief born out from record are that the assessment was completed vide order dated 09.11.2009 and income was assessed at Rs. 2,69,50,00,991/-, which was subsequently revised u/s 251 and u/s 154 and assessed income was finally computed at Rs. 1,97....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the assessee preferred an appeal before the CIT(A) with the submission that the surcharge and educational cess is leviable only after giving credit for MAT and thereafter the tax computation made by the AO in ITNS-7 attached with the impugned order dated 27.11.2014, is not a correct way of tax calculation. In support of this contention, he placed reliance upon the following judgments:- 1. CITVs. Vacment India [ (2014) 369 ITR, 304 (Alld. HC) ] 2. Universal Medicare P, Ltd., Bombay Vs. ACIT - LTU, Mumbai (ITAT 'F Bench, Mumbai) (In ITA No. 839/Mum/2012 - A.Y. 2007-08) 7.1 He also stated that as per decision of various High courts as well as Supreme Court, he mistake u/s. 154 cannot be rectified on a point wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(1)(iia) of the Income Tax Act, 1961 without appreciating the fact that the power generating plant and machinery installed by the assessee company is not a part of business of manufacturing or producing or any article or thing which increase the installed capacity of production of cement as required for claiming such additional depreciation. 13. The facts in brief born out from the record are that the assessee installed and put to use Power Generating units at Bamania & Nimbahera. The power plants were for captive use and power so generated was mainly in manufacturing of cement at units at Bomania & Nimbahera. Since the Power plants were for captive use and power so generated was used in manufacturing of cement, the assessee claimed addi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in u/s 154 of the Act. But, the A.O. was not convinced with it and disallowed the additional depreciation of Rs. 31,53,46,771/-. 16. The assessee preferred an appeal before the CIT(A) with the submission that generation of electricity is akin to manufacturing of a product. The electricity which may not be seen with eyes, but its effect can be seen and feel and electricity can be transferred, delivered, stored, processed etc. He placed reliance upon the judgment of the Hon'ble Supreme Court in the case of CST Vs. Madhya Pradesh Electricity Board reported in (1970) 25 57C 188 (SC). The CIT(A) reexamined the claim of the assessee and being convinced with the explanation, he held that assessee company is entitled for additional depreciation,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ution of power w.e.f. 01-04-2013, the basic concept for claim of additional depreciation remain the same. As far as application of Section 32(l)(iia) of the Act is concerned, what is required to be satisfied in order to claim of additional depreciation is that the assessee engaged in the business of manufacture or production of any "article" or "thing". Thus, taking into consideration all these aspects and after following above judicial pronouncements, I am of the view that claim of assessee company of additional depreciation is well justified and it was rightly allowed vide assessment order dated 24.12.2010, hence the same cannot be denied u/s. 154, accordingly, the disallowance is hereby deleted. Further, ground no. 4 & 5 relates....