2019 (1) TMI 526

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.... and Ld. CIT(A) is wrong on facts and in law. 2. The Ld. AO and Ld. CIT(A) erred in his observation that the Appellant had agreed for the disallowances. 3. The Ld. AO and Ld. CIT(A) erred in disallowing the Appellant's claim for deduction u/s 80-lA of the Income-tax Act, 1961. 4. The Ld. AO and Ld. CIT(A) erred in law and on facts by disallowing the transmission and wheeling charges under section 40(a) of the Income-tax Act, 1961. 5. The Ld. AO and Ld. CIT(A) failed to note that the expenditure relating to erection, commissioning and infrastructural charges ("Impugned expenditure") were not claimed as deduction and had only been capitalized in the accounts. 6. The Ld. AO and Ld. CIT(A) failed to note that the Appellant had not....

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....n 01.05.2000, the partners of the assessee firm are Shri Ajit Kumar Chordia, Shri Bharat Kumar Chordia, Khivraj Automobiles Pvt. Ltd. and Khivraj Motors P. Ltd. It is also not in dispute that as per the agreement for private windmill generation (as per agreement WEG.HT.SC.No. 1737) with Tamilnadu Electricity Board made at Tirunelveli on 15.10.2007 in favour of Khivraj Motors P. Ltd. Since the partnership firm is neither a company nor consortium of companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act as required under clause (i) of section 80IA(4) of the Act, the deduction claimed by the assessee was rejected, which was confirmed by the ld. CIT(A). While confirmi....

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....ng or developing, operating and maintaining any infrastructure facility and therefore, the Tribunal has rightly held that the assessee firm failed to satisfy applicability clause of provision as envisaged under section 80IA(4)(i) of the Act. However, this case has no application to the facts of the present case because of the specific substitution of applicability clause (iv) to section 80IA(4) of the Act, which reads as under: (iv) an [undertaking] which,- (a) is set up in any part of India for the generation or generation and distribution of power if it begins to generate power at any time during the period beginning on the 1st day of April, 1993 and ending on the 31st day of March, 2017; (b) starts transmission or distribution by l....

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....wer generation and its distribution. 3.3 Since the authorities below have not disputed any other parameters of eligibility criteria, we are of the considered opinion that the assessee is eligible to claim deduction under section 80IA(4)(iv) of the Act. Accordingly, we set aside the orders of authorities below and direct the Assessing Officer to allow the deduction claimed by the assessee. Thus, the ground raised by the assessee is allowed. 4. The next ground raised in the appeal of the assessee relates to confirmation of disallowances of infrastructure development charges and erection & commission charges as well as transmission and wheeling charges under section 40(a)(ia) of the Act. 4.1 On verification of the details submitted by the a....