9911796707
TMI Blog2018 (6) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the cost of the assessee. As upheld by HC [2015 (7) TMI 784 - DELHI HIGH COURT] he finding of CIT(A) that the business of assessee had yet not been set up during the A.Y. 2009-10 and that all the costs incurred by it would have to be taken as capital work in progress cannot be faulted. Where there is a refund of excise duty it would go to reduce the project cost/capital work in progress since it is relatable only to the capital assets. - Decided against revenue - ITA No. 2318/Del/2015 - - - Dated:- 7-6-2018 - Shri RS Syal, Vice President And Smt. Beena A Pillai, Judicial Member Department by : Smt. Shefali Swaroop, CIT, DR. Assessee by : Sh. Manoneet Dalal and Sh. Ankit Goyal, A.R. ORDER Per Beena A Pillai, Jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to time and placed written submissions. The Appellant Company is a joint venture of the Tata Power Company Limited and Damodar Valley Corporation with 74% and 26% shareholding respectively. The appellant company was incorporated on 26.07.2000 to operate and maintain electric power generating stations based on conventional I nonconventional resources, tie-lines, substations and transmission lines connected therewith. The company is setting up a thermal power generation plant at Maithon, Jharkhand with a total capacity of 1050 MW. Assessment was completed u/s 143(3) vide order dated 31.01.2014 by the Ld.AO at an income of ₹ 29,64,33,170/- making addition of ₹ 25,81,79,070/-. 2.1. Aggrieved by the order of Ld.AO assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintain electric power generating stations based on conventional/non-conventional resources, tie-lines, substations and transactions lines connected therewith. During the current assessment year the company was setting up a thermal power generation plant at Maithon, Jharkhand. The project was started on 25.10.2007. The plant consists of two independent units of 525 MW each. The construction activity for power plant of such scale takes 4 to 5 years for completion. Subsequently the company has commissioned the commercial operation of Unit-1 on 1st September 2011 and that of Unit-2 on 24th July 2012.During the previous year relevant to assessment year 2009-10, the project was under construction phase. 5.3 The appellant explained that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peration of the last unit or block of the generating station. b) As per this definition the date of commercial operations of the appellant were when the company has commissioned its units, these were as under: 2. The commercial operation of Unit-1 on 1st September 2011 3. The commercial operation of Unit-2 on 24th July 2012. In a letter filed by the appellant company to CERC it was stated that commercial production of the unit was declared to be 1st September 2011. This has been accepted by CERC. 6.2. Based on these facts the Ld.CIT(Appeals) held that when the business of the assessee is not yet set up then the question on assessing income of the assessee company to the Previous Year does not arise. Even ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
