2023 (10) TMI 1528

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....023 arising out of the assessment order framed u/s 143(3) of the Act dated 26.12.2019. 2. The assessee is in appeal before this Tribunal raising the following grounds: "1. That the Ld. Commissioner of Income-tax (Appeals), NFAC was wrong in confirming the addition to the extent of Rs. 73,68,76,693 in relation to the recoverable excess electricity charges on the basis of the decision of the Hon'ble Supreme Court. 2. That without prejudice to the contention raised in Ground No. 1 above, the Ld. Commissioner of Income-tax (Appeals), NFAC failed to appreciate that in pursuance of the concerned decision of the Hon'ble Supreme Court the appellant had duly set off the earlier paid excess electricity charges aggregating to Rs. 123,15,10,000 a....

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....rollary tariff has to be levied as meant for manufacturing unit. On giving effect to the judgment of the Hon'ble Apex Court the assessee was entitled to a refund of Rs. 123.15 Crore from Madhya Pradesh State Electricity Board now renamed as MPVVNL. He further, submitted that the assessee adjusted the electricity charges payable for FY 2016-17 and onwards against the outstanding amount receivable from Madhya Pradesh State Electricity Board. The remaining amount could not be adjusted during FY 2016-17 have been adjusted in the subsequent financial years. However, ld. AO has held that the sum of Rs. 123.15 Crore has to be treated as income for the AY 2017-18 and after adjusting the electricity charges for the year under consideration the r....

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....of electricity paid by the assessee in the preceding years was to be refunded and the total of such amount was Rs. 123.15 Crore. The Madhya Pradesh State Electricity Board did not give the refund to the assessee and the same was being adjusted against the electricity charges payable by the assessee for the year under consideration. The electricity charges for FY 2016-17 were adjusted against the amount receivable from Madhya Pradesh State Electricity Board and the remaining amount which could not be adjusted was adjusted in the subsequent years against the electricity charges payable by the assessee. Ld. AO is of the view that the assessee ought to have declared the amount receivable from Madhya Pradesh State Electricity Board at Rs. 123.15....