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TMI Blog2019 (3) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... s or things and the benefit of additional depreciation cannot be denied. As held by the Constitution Bench, electricity is capable of abstraction, transmission, transfer, delivery, possession, consumption and use like any other movable property. Following the same logic, to deny the benefit of additional depreciation to a generating entity on the basis that electricity is not an article or thing is in our view an artificially restrictive meaning of the provision. The benefit of additional depreciation under Section 32(1)(iia) has, therefore, been rightly granted to the assessee by the concurrent judgments of the CIT(A) and the Tribunal. We also note that, w.e.f. from 01.04.2013, the provision has been amended by the Finance Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the assessee was engaged in the production of any article or thing which, it was claimed, does not include the generation of power. The assessee, in reply, claimed to have been granted such deduction from A.Y. 2006-07 onwards. 3. Ultimately, the Assessing Officer disallowed the addition holding that, on a plain reading of the statutory provision, additional depreciation could be claimed only by an assessee who produces something tangible or movable which could be handled/touched/stored. A later amendment to Section 32(1)(iia) of the Act, specifically dealing with additional depreciation in respect of an entity engaged in the business of generation and distribution of power, was held applicable only w.e.f. 01.04.2013, and not prior t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee company. It is covered under the words article or thing , which is tradable / identifiable. In other words, the electricity falls within the definition of Sale of Goods Act, 1930, and process of generation of electricity is akin to manufacture or production of an article or thing . The power generated need not necessarily be used in the production of assessee's own products namely mining and extraction of gold. The use of electricity in the manufacturing activity of the core business of the assessee is not a precondition for the grant of additional depreciation under the statute. Therefore, we do not see any merit in this appeal. Accordingly, this appeal is rejected. 4. However, we have not gone into the ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly because electrical energy is not tangible or cannot be moved or touched like, for instance, a piece of wood or a book it cannot cease to be moveable property when it has all the attributes of such property. It is capable of abstraction, consumption and use which if done dishonestly is punishable under Section 39 of the Indian Electricity Act, 1910. If there can be sale and purchase of electrical energy like any other moveable object, this Court held that there was no difficulty in holding that electric energy was intended to be covered by the definition of goods . However, A.N.Grover, J., speaking for three-Judge Bench of this Court went on to observe that electric energy can be transmitted, transferred, delivered, stored, possessed et ..... X X X X Extracts X X X X X X X X Extracts X X X X
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