ACIT Vs Pashchimanchal Vidyut Vitran Nigam Limited (ITAT Delhi)
The Revenue appealed against the order of the CIT(A) deleting the disallowance relating to electricity transmission/wheeling charges for the assessment year 2022-23. The Assessing Officer had invoked Section 194Q of the Income-tax Act, 1961 on the ground that tax had not been deducted at source on such charges. The assessee submitted that the issue was already covered by Tribunal decisions in its own cases for assessment years 2012-13, 2014-15 and 2015-16.
The Tribunal noted its earlier order dated 2nd November, 2020, which held that the provisions relating to TDS were not applicable to wheeling/transmission charges and, therefore, no disallowance could be made under Section 40(a)(ia). The Tribunal further observed that Section 194Q applies to the purchase of goods and not to transmission charges, and therefore could not be invoked in the present case. It also recorded that the learned CIT-DR could not controvert or distinguish the assessee’s reliance on the earlier Tribunal decisions. Holding that the issue stood consistently covered in the assessee’s favour, the Tribunal confirmed the CIT(A)’s order deleting the addition and dismissed the Revenue’s appeal. The decision was pronounced on 23rd March, 2026.
FULL TEXT OF THE ORDER OF ITAT DELHI
