an electric transformer), a reasonable projection of the overall remaining life of the asset account can be determined. It was also submitted that the similar claims were allowed to the assessee commencing from assessment year 2005-06 on wards under section 143(3) proceedings and there is no reason to disturb the same during assessment year 2011-12 alone. Attention is specifically drawn to the decision of the Supreme Court in the case of Madhya Pradesh Electricity Board (supra). The brief facts of this issue is that the assessee is a public sector undertaking engaged in the business of generation and distribution of electricity. (supra). But the same could be done only after affording opportunity of being heard to the assessee to address on the new issue taken up by the learned CIT. All Rights Reserved. 6.1. In certain types of analysis, they also provide graphical tools, such as those shown below, to compare the utility’s asset experience with potential mortality curves so the best life projection can be chosen. Please help on how to solve it or Provide the updated utility. The assessee submits that its activity of generation of power amounted to production of an article or thing. The model is designed to adapt to the different quantity and detail of data our clients have available in order to utilize the depreciation system that will produce the most accurate results. Assessment was framed by JCIT, Range-9, Kolkata under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for assessment year 2011-12 vide his order dated 28-3-2014. Now the question to be decided is as to whether the assessee engaged in generation and distribution of electricity could be said to be engaged in the business of manufacture or production of any article or thing so as to be eligible for claiming additional depreciation under section 32(1)(iia) of the Act. In order to address the “prediction problem,” a commonly accepted solution is the use of the mortality curves that apply to utility plant. (-) 2,27,00,22,060 (loss). By increasing the return component, a utility can maximize profit. For example, when an Income Tax officer adopted one of the courses permissible in law and it has resulted in loss of Revenue; or where two views are possible and the Income Tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the Revenue, unless the view taken by the Income tax officer is sustainable in Law.’. CASE STUDY India’s Accelerated Depreciation Policy for Wind Energy April 2015 Tushar Sud, Rajneesh Sharma, Radhika Sharma (Deloitte Touche ... hour [kWh]) per unit of electricity fed into the grid over and above the state-fixed tariff for a period of no less than four years and a maximum period of 10 years. in books of accounts-reg, Gujarat HC rejects TAR/ITR due date date extension writ applications. We find that the learned CIT had changed his track from originally stating that the order passed by the learned assessing officer had incorrectly applied the provisions of section 32(1)(iia) of the Act for the assessment year 2011-12, to ‘lack of inquiry’ on the part of the learned assessing officer with regard to the claim of additional depreciation. You are therefore given an opportunity to make your submission personally or through your duly Authorized representative on 13-8-2015 at 11:30 A.M. before me at my chamber. This formula is unknown to the average utility customer, yet utility executives, wonks, and regulators know it by heart. Changing utility practices, market, technology, and regulatory forces can also alter even the best projections. 2. This matter was further carried by the revenue to the Hon’ble Calcutta High Court which was dismissed by the Hon’ble Calcutta High Court in the case of CIT v. Ankit Metal & Power Ltd. (2015) 972 ITR 660 (Cal.). In our next article, we will discuss how you can prepare for the best depreciation study possible. Damodar Valley Corporation passed under section 143(3) dated 28-3-2014 for the assessment year 2011-12. 6. In the said order the CIT held the assessing officer’s order granting additional deprecation to be erroneous on the ground that the assessee was not engaged in the business of manufacture or production of any article or thing. (A) 10% (B) 15% (C) 20% (D) 25% 39. 2. In the production department of a manufacturing company, depreciation expense is considered an indirect cost, since it is included in factory overhead and then allocated to the units manufactured during a reporting period. The various apex court decisions relied upon by the assessee before the learned CIT as mentioned supra in the context of levy of sales tax on the sale of electricity had also decided that the generation of electricity amounts to production of article or thing. 4. The focus of this article is on the plant content within buildings in particular. Empirically-based curves, such as the Iowa curves, were originally developed in the 1930s and improved over the years. The assessee also submitted that no appeal was preferred by the revenue to the Hon’ble Delhi High Court against the order of the Delhi Tribunal supra. Debt bearing 12% Interest is to be repaid in 10 equal annual installments. In the decided case the State Electricity Board generated and distributed electricity energy to various consumers. CST v. M.P. It is undisputed that no opportunity was afforded to the assessee in the instant case before us by the learned CIT to address on the aspect of ‘lack of inquiry’ on the allow ability of claim of additional depreciation. Aggrieved, the assessee is in appeal before us on the following grounds :–. CIT v. Hutti Gold Mines Co. Ltd. (2013) 60 SOT 147 (Bang.-Trib.). Hence, it could be safely concluded that the assessee is entitled for claiming additional depreciation under section 32(1)(iia) of the Act even prior to the amendment brought in by Finance Act, 2012. 247,36,00,558. Only solar electricity technology can give clean point-of-use power. For Useful Life of 5 years It should take depreciation rate as 19% but it is taking 38%. Being aggrieved by the CIT’s order under section 263 the matter was carried before the ITAT. The issue as to whether the generation of power amounts to production of an article or goods was examined by Supreme Court in the following judgments :–. CIT (2012) 54 SOT 177. For that on the facts and in the circumstances of the case, the CIT was unjustified in passing the revision order under section 263 on the alleged ground that the assessing officer did not make any inquiry into the aspect of allow ability of additional depreciation even though in the show cause notice issued; no such ground was assigned for considering the order of assessment to be erroneous and in that view of the matter the CIT’s order setting aside the assessment for lack of inquiry was unsustainable and deserves to be set aside. The assessee in that case contended before the Court that “electricity” generated was not “goods” as it did not have any physical existence or attributes or mass which “goods” possess. 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