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TMI Blog2021 (2) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts. Therefore, such a requirement, which is not prescribed in the language of the provision cannot be read into it. MAT Applicability section 115JB - Issue already been answered by this court in 'COMMISSIONER OF INCOME TAX VS. ING VYSYA BANK LTD.' [ 2020 (1) TMI 1116 - KARNATAKA HIGH COURT] Thus, in view of language employed in Section 80IA(4)(iv)(c) of the Act, the requirement contained therein is fulfilled if the assessee undertakes the substantial renovation and modernization of the existing or distribution lines and it is not necessary for the assessee to complete the same as the aforesaid provision does not contain the requirement of completion. The authorities have erred in law in adding the words 'capital work in progress' in the provision which is not mentioned and have also erred in holding that the renovation and modernization should be done in Previous Year. The aforesaid requirements are not contemplated by the provision in question. Assessee appeal allowed. - I.T.A. NO.204 OF 2013 - - - Dated:- 27-1-2021 - HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE NATARAJ RANGASWAMY APPELLANT (BY SRI. A. SHANKAR, SR. COUNSEL FOR SRI. M. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 04.07.2012 affirmed the order passed by the Commissioner of Income Tax (Appeals). In the aforesaid factual background, the assessee has approached this Court. 4. Learned Senior counsel for the assessee, while inviting the attention of this Court to Section 80IA(4)(iv)(c) of the Act, submitted that the aforesaid provision prescribes for 3 types of undertaking which are different from each other for which deduction under Section 80IA of the Act is available. It is pointed that they are an undertaking which is set up for generation or generation and distribution of power, starts transmission or distribution for laying network of new transmission or distribution lines, undertakes substantial renovation and modernization of existing network of transmission or distribution lines. It is submitted that the case of the assessee falls within the third category of undertaking and therefore, the amount undertaken towards renovation and modernization has to be considered. Alternatively, it is submitted that capital work in progress are to be included, the same should not be restricted only to those amounts which are capitalized in books and substantial renovation and modernization sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AND ANR. V. PUNJAB NATIONAL BANK AND OTHERS (2007) 2 SCC 230, STATE LEVEL COMMITTEE AND ANR. V. MORGARDSHAMMAR INDIA LTD. (1996) 1 SCC 108, STATE OF MAHARASHTRA AND OTHERS V. SANTOSH SHANKAR ACHARYA (2000) 7 SCC 463, FEDERATION OF ANDHRA PRADESH CHAMBERS OF COMMERCE AND INDUSTRY V. STATE OF ANDHRA PRADESH (2001) 247 ITR 36 (SC), UOI V. HANSOLI DEVI (2002) 7 SCC 309, NASIRUDDIN V. SITA RAM AGARWAL (2003) 2 SCC 577, MITHILESH SINGH V. UOI (2003) 3 SCC 309, S. REGHURAM REDDY V. CCT (2004) 134 STC 598, CWT V. RAMARAJU SURGICAL COTTON MILLS LTD. (1967) 63 ITR 478 (SC), CIT V. ALCOCK ASHDOWN CO. LTD. (1997) 224 ITR 353 (SC), CIT V. ING VYSYA BANK LTD. (2020) 422 ITR 116 (KAR.) 6. On the other hand, learned counsel for the revenue submitted that deduction under Section 80IA of the Act was intended to be provided to encourage modernization and upgradation of plant and machinery in power sector within a specified period. In order to ensure wider network and prevention of transmission losses. It is further submitted that language employed in Section 80IA (4)(iv)(c) of the Act is unambiguously clear, which provides for deduction towards substantial renovation and modernization of exist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he parties and have perused the record. Before proceeding further, it is apposite to take note of well settled legal principles with regard to statutory interpretation. It is cardinal rule of construction of statutes to read the statutes literally that is by giving to the words their ordinary, natural and grammatical meaning. It is equally well settled legal proposition that if the language of the statute is plain and unambiguous, the court must adopt the ordinary rule of literal interpretation and departure from the aforesaid rule can only be made only in case of apparent absurdity. [See : 'JUGAL KISHORE SARAF VS. RAW COTTON CO. LTD.', AIR 1955 SC 376, 'RAKESH KUMAR PAUL VS. STATE OF ASSAM', AIR 2017 SC 3948, 'UNION OF INDIA VS. EXIDE INDUSTRIES LIMITED ORS.', 2020 (5) SCC 274] . Now we may advert to the relevant extracts of Section 80IA(2), 80IA(4)(iv)(c) of the Act, which read as follows: 80-IA. (2) The deduction specified in sub section (1) may, at the option of the assessee, be claimed by him for any ten consecutive assessment years out of fifteen years beginning from the year in which the undertaking or the enterprise develops and begins to ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'undertake' has not been defined under the Act. Therefore, its common parlance meaning has to be taken into account. The meaning of the word 'undertake' as defined under Black's Law Dictionary, 9th Edition to mean to give a formal promise; guarantee, to act as surety for (another); to make oneself responsible for (a person fact, or the like). Similarly, in P Ramanatha Aiyar's Law Lexicon, 2nd Edition, the expression 'undertake' is defined as to engage to look after or attend to. To endeavor to perform or try, to promise, to finalise, engage, agree or assume an obligation. To lay oneself under an obligation or to enter into stipulation, to perform or to execute, to convenient, to contract'. Thus, the word 'undertake' used in Section 80IA(4)(iv)(c) of the Act cannot be equated with the word 'completion'. The Circular dated 15.07.2005 issued by the Central Board of Direct Taxes (CBDT) clearly states that the tax benefit under the Section has been extended to undertakings, which undertake substantial renovation and modernization of existing network of transmission or distribution lines during the period beginning from 01.04.2004 an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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