TaxTMI 
TaxTMI 
2025 (1) TMI 878
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....der dated 14.06.2019 [hereafter 'the impugned order'] passed by the learned Income Tax Appellate Tribunal [hereafter 'the learned ITAT'], in ITA No. 2785/Del/2013, in respect of the assessment year (AY) 2007-08. FACTUAL BACKGROUND 2. The respondent - M/s Tata Power Delhi Distribution Limited - [hereafter 'the assessee'] is a joint venture between Tata Power Company Limited and the Government of NCT of Delhi, wherein Tata Power Company Limited, along with Tata Sons Limited, holds 51% of the shares, while the remaining 49% of the shares are held by the Government of NCT of Delhi. The assessee is engaged in the power generation and distribution of electricity in North and North West Delhi. 3. For the AY 2007-08, the assessee filed its....
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.... para 3) B. Excess Claim of depreciation on UPS disallowed (as per para 4) Rs. 26,36,870 C. Provision for Bad & Doubtful Debts (as per para 5) Rs. 23,41,192 D. Energy Tax disallowed u/s 43B (as per para 7) Rs. 10,17,86,761 E. Disallowance u/s 14A of the Act/Rule 8 D(as per para 8) Rs. 1,17,22,000 TOTAL INCOME Rs. 132,73,84,883 TOTAL INCOME Rs. 132,73,84,883 II. COMPUTATION OF BOOK PROFIT Book Profit declared u/s 115JB in the revised computation Filed vide Annexure 2 to letter dated 18.12.2009 Rs. 192,54,68,053 Addition made to profit of business as discussed in body of order appearing as A,B,C,D & E in the pre-page computation (page 18) Rs. 126,23,86,23 BOOK PROFIT....
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.... excess depreciation on UPS amounting to Rs. 26,36,870/-, provision for doubtful debts amounting to Rs. 23,41, 192/-, energy tax disallowed u/s 43B amounting to Rs. 10,17,86,761/- and disallowance u/s 14A amounting to Rs. 1,17,22,000/-. The Assessing Officer while computing the income of the assessee under the normal provision had made the above addition to the total income of the assessee. Consequent to the above said additions the Assessing Officer also recomputed the book profits under section 11SJB of the Act by making the above additions of Rs. 126,23,86,823/- to the book profit shown by the assessee under section 115JB of the Act. 6.2 The Hon'ble Supreme Court in Apollo Tyres Ltd. 255 ITR 273 (SC) had laid down the princi....
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..... Therefore, insofar as computation of adjusted book profit is concerned, provisions of subsection (2) and sub-section (3) of section 14A cannot be imported into clause (f) of explanation to Sec 115JB. Therefore, the disallowance made u/s 14A are also not covered under the clauses of explanation to sec l 15JB. 6.4 Regarding addition of sum of Rs. 23,41,192/- on account of difference in provision for doubtful debts (energy tax) under the normal provisions as well as under sec 115JB, the provision for doubtful debts for the year under consideration has been shown at Rs. 5,53,73,000/- in the balance sheet. However, in the profit and loss account as well as in the computation of income and book profit, the assessee has shown provision ....
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....axing book profits under Section 115JB of the Act. The learned ITAT, vide the impugned order, allowed the assessee's appeal and dismissed the Revenue's appeal. The learned ITAT relied on the decision of the Kerala High Court in Kerala State Electricity Board v. Deputy Commissioner of Income-tax: (2010) 329 ITR 91, and held that the ratio of this decision applied to the present case. The learned ITAT accordingly held that Section 115JB of the Act was not applicable to the assessee. The relevant extract of the impugned order is extracted hereunder: "7. In so far as question of applicability of provisions of section 115JB of the appellant company is concerned, it has been answered by the Hon'ble Kerala High Court in case of Kerala....