Assessee in Power Business Denied Enhanced 35% Depreciation Under Section 32(1)(iia) Proviso

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ITAT ruled that an assessee engaged in power generation, transmission, and distribution is not entitled to enhanced additional depreciation of 35% under the proviso to Section 32(1)(iia), but only to the standard 20% rate under the main provision. The Tribunal determined that the proviso explicitly restricts the higher benefit to undertakings manufacturing or producing articles in specified backward areas, deliberately excluding power businesses. Similarly, the assessee cannot claim deductions under Sections 32AC and 32AD, as these provisions do not extend to power businesses. Following Supreme Court precedents in Dilip Kumar and Wipro cases, the Tribunal emphasized that exemption provisions must be strictly construed, and benefits cannot be granted through mere interpretation when statutory conditions are not fully satisfied.....