Case Law Details
DCIT Vs TATA Power Delhi Distribution Ltd. (Delhi High Court)
Assessee is under a statutory obligation to set apart 50% of the excess amount generated due to the overreaching of the targets, for the purpose of the consideration of the DERC to fix the future tariffs either to give relief to the consumers or otherwise. A reading of the statute, notification and the orders of the DERC clearly indicates that the assessee is not free to use this efficiency gain amount the way it likes. Whether or not a separate account is opened, when this amount is separately shown under this head in the books, it makes little difference in so far as the application of the ratio of Puna Electricity Supply Co. Ltd. (supra) is concerned. Crux of the matter is that the assessee in both the cases has no right to appropriate the ‘efficiency gain’ amount and such amount is at the disposal of the DERC though not physically but in respect of utilization thereof. We, therefore, are convinced that the ratio of Puna Electricity Supply Co. Ltd (supra) is squarely applicable to the case of the assessee before us and on that score, we allow the contention of the assessee that they have rightly reduced the efficiency gain amount their profit and loss account
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
1. The present appeal under Section 260 A of the Income Tax Act, 1961 (hereinafter referred as “Act”) assails the common order dated 14th June, 2019 passed by the learned Income Tax Appellate Tax (“ITAT”), relating to the assessment year (AY) 2009-2010, whereby the Tribunal has decided several appeals preferred by both the Appellant as well as the Respondent. The present appeal is in respect of ITA No. 5368/Del/2013, filed by the Revenue, that stands dismissed by virtue of the impugnedorder.
2. The factual matrix giving rise to the present appeal is that the Respondent-Tata Power Delhi Distribution Ltd.(herein after referred as “assessee”), a joint venture between the Tata group and the Delhi Government and is in the business of distribution of electricity in north and north-west area of Delhi. An assessment order was passed under Section 143(3) of the Act whereby the total income of the Respondent was computed at Rs.139,21,95,000/- and additions were made inter alia on the ground of (a) derecognition of revenue: Rs.78,91,50,000 and (b) disallowance under Section 80 IA of Rs. 35,71,77,686/-. In the appeal preferred before the Commissioner of Income Tax (hereinafter referred to as “CIT(A)”), the Respondent succeeded and vide order dated 30th July, 2013 the above noted additions were deleted. Thereafter, the assessee and the appellant preferred appeals before the ITAT. The common issues pertaining to above noted additions were identified and decided. The issues were decided in favour of the Respondent-assessee vide impugned order dated 14th June, 2019. The Appellant/ Revenue has preferred the present appeal impugning the order passed by the Tribunal qua the aforenoted issues.
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