TaxTMI 
TaxTMI 
2023 (11) TMI 1384
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....es of the case, the order passed by the learned Principal Commissioner of Income Tax (Pr. CIT) under Section 263 of the Act is bad, both in the eye of law and on facts. 2. On the facts and circumstances of the case, the order passed by the learned Pr. CIT cancelling the assessment order passed by the AO is untenable in the absence of order of the AO being erroneous as well as prejudicial to the interest of the Revenue. 3. On the facts and circumstances of the case, the learned Pr. CIT has erred both on facts and in law in ignoring the fact that all the issues raised by him in notice under Section 263 were before the A.O. and as such the jurisdiction on this issue under Section 263 cannot be assumed. 4. On the fact....
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.... forward of Rs. 52,82,33,949/-. The case was selected for complete scrutiny through CASS. The assessment in the case of assessee for AY 2013-14 was completed on 26/12/2016 u/s 143(3) of the Act. The Ld. PCIT initiated proceedings u/s 263 of the Act and considered the assessment order passed u/s 143(3) of the Act dated 26/12/2016 and held that the same is erroneous so far as it is prejudicial to the interest of the Revenue owing to the failure of the Assessing Officer to at Rs. 88,26,37,126/- on account of the income from sale of fly ash and cenosphere. 3. Aggrieved by the order of the Ld. PCIT, dated 27/03/2019, the assessee preferred the present appeal on the ground mentioned above. 4. During the hearing, the Ld. AR submitted that th....
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....gap in between demand and supply of electricity, a new concept of trading of power started in the market to bridge this gap. It became an important tool for utilizing the short/ medium term surpluses of the existing capacity more efficiently and became an independent activity in the power sector. Since there is progressive strengthening of the regional and inter- regional transmission grids, it further made the trading of power as an important activity. The Electricity Act, 2003 also recognized trading in power as a distinct business activity. Under this scenario NTPC Limited (A Government of India Enterprise), to reap the benefits of the vast potential of power. trading in the country, formed NTPC Vidyut Vyapar Nigam Limited (NVVN....
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....n credited by NVVN to a separate Fly Ash Utilization Fund and hence does not form part of NVVN's income. 7. Further, we have gone through the page no. 14 of the paper book depicting the details of fly ash utilization fund which is as under: NTPC VIDYUT VYAPAR NIGAM LTD. 4. Fly Ash Utilization Fund (Amount in Rs. ) As at 31,03,2015 31.03.2014 Ay per last financial statements 3,26,23,01,631 2,34,93,34,677 Add: Transfer from sales (Note 18) 87,42,34,784 1,22,55,13,224 Add: Transfer from other Income (Note 19) (Net of tax) 20,77,17,705 Transfer from reserve and surplus (Note 3)(Net of tax) - 17,01,18,785 Less: Utilized during the year &nb....
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....ome tax) Gross Rs. 31,46,76,117/) has been transferred from "Other Income (Note 19) (previous year Rs. 17,01,18,7867 (net of income tax)] from "Reserve and surplus (Note 3). c) During the financial year 2013-14 the holding company framed a policy guideline for utilization of Ash Fund created from sale of fly ash/ fly ash products, in reference to the above notification dated 03.11.2009, including employee cost and other administrative expenditure incurred at its various coal based generating stations/ offices. These expenses mainly pertain to the development of infrastructure or facilities, promotion and facilitation activities so as to increase the utilization of fly ash. Therefore, during the current year company has charged an a....
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....ash utilization levels in the subsequent years, the use of financial return from fly ash shall get restricted to development of infrastructure or facilities and promotion or facilitation activities for fly ash utilization until 100 percent fly ash utilization level is again achieved and maintained." 9. On going through the entire facts, we find that the amount collected from sale of fly ash and fly ash based products by coal and/or lignite based thermal power stations or their subsidiary or sister concern units, as applicable should be kept in a separate account head and shall be utilized only for development of infrastructure or facilities, promotion and facilitation activities for use of fly ash until 100 percent fly ash utilizat....