2025 (6) TMI 162
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....he common order. Other ITA Nos. 86, 61, and 63/Ind/2023 in respect of the Assessment Year 2007-08, 2011-12 and 2013-14 respectively have also been dismissed. 02. The respondent assessee is an Electricity Distribution Company of State of Madhya Pradesh (DISCOM) engaged in the business of distribution and retail supply of electricity. In the Assessment Year 2012-13, the Assessee Company filed a return declaring total loss of Rs. 2,39,34,28,780/-. The case was selected for scrutiny assessment through CASS. After issuance of show-cause notice, the assessee company participated in the proceedings before the Assessing Officer. The representative of the assessee company appeared alongwith books of account, cash book, ledger and requisite document....
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....32,25,00,000 and Electrification Charges of Rs. 3,32,00,000 as 'Capital receipts' instead of 'Revenue receipts'? (2) Whether the ITAT was justified in law in holding the receipts as 'Capital receipts' even though the assessee itself stated that such receipts were collected by way of Charges" from customers for have been facilitated a particular service?" 05. The assessee charged the supply affordable charges and electrification charges from the customer for facilitating the particular service. The assessee company recovered the cost and expenses towards laying of extensive line, acquisition of fabrication of plant and machinery for affecting the supply of electricity to the consumer as one time charges hence, it i....
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....ines which exceeded 100 ft. in length or it is expenditure incurred in respect of all service lines. It is however not disputed that a part of the amount received from the consumers remains with the assessee after meeting the expenses incidental to the construction of the service lines. But an electric service line requires constant inspection and occasional repairs and replacement and expenses in this behalf have to be undertaken by the assessee. The amount contributed by the consumer for obtaining a new connection would of necessity cover all those services. The amount contributed by the consumer is in direct recoupment of the expenditure for bringing into existence an asset of a lasting character enabling the assessee to conduct its busi....
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....ted. In Commissioner of Income-tax v. Poona Electric Supply Co. Ltd. (1), it was held by a Division Bench of the Bombay High Court that the amount received from the Government of Bombay by the Poona Electric Company in reimbursement of expenses incurred for constructing new supply lines for supplying energy to new areas not previously served, was a capital receipt and not a trade receipt. The question of the taxability of the "profit element" in the contribution received from the Government was not expressly determined; but the court in that case held that the entire amount received by the Poona Electric Company from the Government as contribution was a capital receipt. In Monghyr Electric Supply Co. Ltd. v. Commissioner of Income-tax, ....