Assessee Entitled To Additional Depreciation On The Power Plant And Installed Windmill: Delhi ITAT

The assessee/appellant is engaged in the fields of manufacturing and selling of sponge iron, billets, wire rod, TMT, and generation of power, etc. The assessee filed its e-return declaring total income and the return was revised by declaring a return of income. The assessment order was issued against the assessee after assessing the assessee's income and recalculating the book profit.

The assessee has preferred an appeal before the learned Commissioner of Income-Tax (Appeals). The Commissioner of Income Tax (Appeals) deleted the disallowance on account of the excess deduction claimed under section 80IA(8) of the Income Tax Act. The CIT (A) deleted the addition on account of depreciation made while calculating book profit under section 115JB of the Income Tax Act. The CIT (A) upheld the action of the Assessing Officer in making an addition on account of additional depreciation under section 32(1) (iia) of the Income Tax Act.

The assessee submitted that the Commissioner of Income-Tax (Appeals) had committed a grave error in upholding the action of the Assessing Officer. The assessing officer made the disallowance on account of additional depreciation under the provisions of section 31(1)(iia) of the Income Tax Act. The assessee submitted that the issue had already been decided in favour of the assessee in the assessee's own case for the earlier and subsequent years.

The ITAT held that the assessee engaged in the generation or generation or distribution of electricity was held to be eligible for additional depreciation. The assessee is entitled to additional depreciation. The assessee is entitled to additional depreciation on the power plant and the windmill installed during the year.

Case Title: Nalwa Steel And Power Ltd Versus DCIT

Citation: ITA No.5548/Del/2017

Dated: 18.05.2022

Counsel For Appellant: Advocate Ananya Kapoor, Salil Kapoor

Counsel For Respondent: Sr.DR Sunil Kumar Rajwanshi

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