Case Law Details
NTPC Vidyut Vyapar Nigam Ltd. Vs PCIT (ITAT Delhi)
Conclusion: While granting relief to NTPC, the proceeding under Section 263 could not be initiated on account of income received from the fly ash and cenosphere as in view of the notification of the Government the fly ash fund transferred to NTPC Ltd.
Held: PCIT initiated proceedings u/s 263 and considered the assessment order passed u/s 143(3) and held that the same was erroneous so far as it was prejudicial to the interest of the Revenue owing to the failure of AO to at Rs.88,26,37,126/- on account of the income from sale of fly ash and cenosphere. It was held that 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 should be utilized only for development of infrastructure or facilities, promotion and facilitation activities for use of fly ash until 100 percent fly ash utilization level was achieved; thereafter as long as 100% fly ash utilization levels were maintained, the thermal power station would be free to utilize the amount collected for other development programmes also and in case, there was a reduction in the fly ash utilization levels in the subsequent year(s), the use of financial return from fly ash should get restricted to development of infrastructure or facilities and promotion or facilitation activities for fly ash utilization until 100 percent fly ash utilization level was again achieved and maintained. In view of the notification of the Government and the fly ash fund transferred to NTPC Ltd., no addition was called for on this account. Hence, the order of the PCIT passed u/s 263 could not be upheld. By respectfully following the order of the Co-ordinate Bench of the Tribunal in assessee’s own case for AY 2015-16 and in the absence of any change of the circumstances, no addition was called for on account of income from fly ash and cenosphere.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by Assessee is filed against the order of Learned Principal Commissioner of Income Tax-06, New Delhi [“Ld. PCIT ”, for short], dated 27/03/2019 for Assessment Year 2013-14.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
