2022 (3) TMI 580

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.... a company stated to be engaged in retail gas distribution business of supplying Compressed Natural Gas (CNG) to transport sector and Piped Natural Gas (PNG) to domestic, industrial and commercial sectors in Delhi and NCR. Assessee filed its return of income for A.Y. 2015-16 on 30.09.2015 declaring income of Rs. 529,68,66,240/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 27.12.2017 and the total income was determined at Rs. 533,33,93,749/-. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 20.09.2018 in Appeal No.29/17-18 allowed the appeal of the assessee. Aggrieved by the order of CIT(A), Revenue is now in appeal and has raised t....

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....assessee had claimed additional depreciation amounting to Rs. 3,65,27,509/- u/s 32(1)(iia) of the Act. Assessee was asked to substantiate the claim of additional depreciation and furnish the necessary documents. Assessee inter alia submitted that assessee is engaged in the business of Natural Gas in commercial and domestic sector and is also engaged in the manufacturing/production process. It was further submitted that assessee had obtained Certificate from Central Excise Department and it was paying excise duty also. It was further submitted that the Excise duty was leviable only when a person is engaged in manufacturing activities. It was thus inter alia submitted that since the assessee was engaged in manufacturing activity, it was eligi....

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....e claim of depreciation of Rs. 3,65,27,509/-. 6. Aggrieved by the order of AO, assessee carried the matter before CIT(A). CIT(A) while deciding the issue in assessee's favour noted that for A.Y. 2007-08, AO in the assessment order passed u/s 147 of the Act had disallowed the claim of additional depreciation but CIT(A) held assessee to be eligible for the claim of additional depreciation. He also noted that the order of CIT(A) was challenged by Revenue before ITAT. Hon'ble ITAT vide order dated 25.04.2018 confirmed the order passed by the CIT(A) and held the assessee to be a manufacturer as per the Income Tax Act and therefore eligible to claim additional depreciation u/s 32(1)(iia) of the Act. He therefore noted that the facts in the yea....