TaxTMI 
TaxTMI 
2016 (12) TMI 1075
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....3,49,000/- claimed by the appellant for the year under consideration, the assessment of which has already been finalized under section 143(3) of the I T Act. 3.0 The learned Commissioner of Income Tax-1, Baroda erred in law and on facts has held that the appellant has wrongly claimed set off of brought forward business losses and unabsorbed depreciation of earlier years and has thereby directed the Assessing Officer to verify the same and recompute the claim of set off of unabsorbed business losses and depreciation. The learned Commissioner of Income Tax-1, Baroda has erred in holding that the Government Grant of Rs. 250.00 crores received in terms of Financial Restructuring Plan and being allocated by the holding company should have been reduced from the cost of capital assets instead of it being taken to the Reserves & Surplus for the year under consideration, the assessment of which has already been finalized under section 143(3) of the I T Act. 4.1 learned Commissioner of Income Tax-1, Baroda erred in law and on facts has held that the appellant has claimed excess depreciation and that has thereby understated the book profits under section 115JB of the I T Act. The lea....
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....ion of power and activity of power generation and satisfies the condition of manufacture or production of any article or thing as required by the Act. Reliance was placed on the decisions of the Hon'ble Supreme Court in the case of MPEB 1970 SC 732 and State of AP vs. NTPC 127 STC 280W. Reliance was also placed on the decisions of the Co-ordinate Bench in the case of M. Satishkumar in ITA No. 718/MDS/ 2012, Hutti Gold Mines Co. Ltd. in ITA No. 832/BANG/2012 and NTPC Ltd. in ITA No. 1438/DEL/2009. 7. A careful perusal of all the decisions relied upon by the ld. Counsel before us pertained to assessment years prior to the amendment brought in the Act in Section 2(29BA) by which the definition of manufacture now reads as under:- S. 2 [(29BA) "manufacture", with its grammatical variations, means a change in a non-living physical object or article or thing,- (a) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or (b) bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structure;] 8. This amendmen....
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....iation amounting to Rs. 1,16,28,29,634/-,there remained a profit of Rs. 80,76,29,404/- as shown in the below table: Assessed income before allowing set off of earlier years losses Rs.1,97,04,59,038/- Set off of earlier years' business loss Nil No loss was available for set off Set off of brought forward unabsorbed depreciation (Rs.1,16,28,29,634/-) Rs.1,16,28,29,634/- No amount remains to be carried forward to A.Y. 2011-12. The amount carried forward is required to be withdrawn Rs.80, 76, 29,404/- There remained no business loss or unabsorbed depreciation for carry forward and set, off 11. A perusal of the order of the authorities below shows that the assessee company has claimed set off of unabsorbed business loss/unabsorbed depreciation as per the return of income field by the assessee company. The set off of loss and depreciation are to be allowed on the basis of income/loss determined in the assessment of a particular year and if subsequently the income/loss so determined is reduced in appeal the claim of set off shall be subject to change accordingly. Therefore, this issue needs verification by the A.O. while g....
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....o allocate the same to DISCOMs in the form of Share Capital from GUVNL. Since the DISCOM related grants alongwith consumers' contribution meet with the equity requirement of DISCOMs it is proposed not to allocate the FRP grant to DISCOMs for the FY 2009-10. As regards to GETCO, they have incurred capital expenditure of Rs. 650 crores upto January'10. Against the said capital expenditure, they have received consumers' contribution to the tune of Rs. 87 crores. Further, the Govt. grant towards creation of transmission lines and sub-stations of Rs. 151 crore (RE) is specifically meant for GETCO. In addition for creation of new Sub-Stations in coastal areas under Sagarkhedu Yojana, Govt. of Gujarat has given Share Capital Contribution of Rs. 37.20 crores to GUVNL. The said grant and share capital contribution will be given to GETCO as share capital contribution from GUVNL. In addition, in the revised estimate, Govt. has made a provision of Rs. 50 crores as Equity Share Capital contribution to GETCO directly (without routing through GUVNL). Thus, GETCO is already having Equity Share Capital contribution to the tune of Rs. 238.20 crores in addition to consumer's contributi....
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.... 2 01.04.1994 108,71,653.08 3 01.04.2004 499,63,720.59 Total 1459,15,582.56 For the purpose of finalizing the accounts of the company, the usefulness of the remaining structures were determined and after detailed verifications, it was decided that 50% of the cost of the Cooling Tower can be utilized in the construction of new Cooling Tower. Accordingly only 50% of the Written Down Value of Rs. 525.87 lacs (Cost Rs. 1459.17 Lacs Less Total Depreciation till date Rs. 407.45 lacs) was written off as loss and booked under the head Miscellaneous losses written off. Thus, the said loss was actually written off and was not merely a provision for loss. This apart, there is no element of estimation in it so as to term it as "unascertained liability" inasmuch as the cost of the Cooling Tower and depreciation claimed thereon in the books is fully verifiable and certain. In view of the above, it is submitted that the said amount cannot be treated as unascertained liability and can under no circumstances be added under the normal provisions and under section 115JB of the I T Act. 20. The above submission of the assessee has to be looked upon....