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TMI Blog2012 (11) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down under section 32(1)(iia). The Government vide Finance Act, 2012 has amended the provisions of section 32(1)(iia) to include the business of generation or generation and distribution of power, eligible for benefit under section 32(1)(iia). Although the said amendment is with effect from 1.4.2013 but it gives impetus to the view that generation of electricity is a manufacturing process and qualifies for the benefits under section 32(1)(iia) - in favour of assessee. - ITA No.718/Mds/2012 - - - Dated:- 28-9-2012 - SHRI N.S. SAINI, AND SHRI VIKAS AWASTHY, JJ. Appellant by : Mr. Guru Bhashyam, JCIT Respondent by : Mr. T.Banusekhar, C.A O R D E R PER VIKAS AWASTHY, JM: The Revenue has filed the appeal agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder, the assessee preferred an appeal before the CIT(A). The CIT(A) vide order dated 16.1.2012 allowed the appeal of the assessee by following the judgements of Hon ble Madras High Court in the case of CIT Vs. Tech Arai Ltd., reported as 321 ITR 477(Mad) and CIT Vs. Texmo Precision Castings reported as 321 ITR 481. 5. Now, the Revenue has come in appeal impugning the order of the CIT(A)-I, Coimbatore. Mr. Guru Bhashyam, appearing on behalf of the Revenue submitted that the assessee is a commission agent and not a manufacturer. Therefore, the assessee is not entitled to additional depreciation under the provisions of section 32(1)(iia). The D.R. further submitted that the CIT(A) has erred in relying on the decisions of the Hon ble Mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as 2002 (4) TMI 694(SC). In the said judgement, the Hon ble Supreme Court has elaborately explained what is electricity. The Hon ble Court has observed that .however, we are dealing with the case of electricity as goods, the property whereof, as we have already noted, is that the production (generation), transmission, delivery and consumption are simultaneous, almost instantaneous. Electricity as goods comes into existence and is consumed simultaneously, the event of sale in the sense of transferring property in the goods merely intervenes as a step between generation and consumption. 7. The A.R. pointed out that the observation of the Hon ble Supreme Court of India in the aforesaid case clearly shows that the term production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icity is akin to manufacturing of a new product. In the instant case, electricity which may not be seen with the eyes, however, its effect can be seen and felt. The electricity can be transmitted, transferred, delivered, stored, possessed etc. The Hon ble Supreme Court in the case of the CST Vs. Madhya Pradesh Electricity Board (supra) has held that electricity falls within the definition of goods under the provisions of Sale of Goods Act, 1930. The Delhi Bench of the Tribunal in the case of NTPC Ltd. (supra) after a detailed examination of several judgements, Acts, Constitution of India, has concluded that the process of generation of electricity is akin to manufacture of an article or thing. 10. In view of the above, we are of the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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