Electrification Charges recovered by Power Company is Capital Receipts: MP HC

PCIT Vs M. P. Paschim Kshetra Vidyut Vitran Company Ltd. (Madhya Pradesh High Court)

The Madhya Pradesh High Court has dismissed an appeal filed by the Principal Commissioner of Income Tax-I, upholding the decision that “Supply Affording Charges” and “Electrification Charges” recovered by an electricity distribution company are capital receipts, not revenue receipts. This ruling was made in the case of PCIT Vs M. P. Paschim Kshetra Vidyut Vitran Company Ltd.

The appeal, filed under Section 260A of the Income Tax Act, 1961, challenged an order

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