The assessee, a power distribution company, had incurred expenditure on network of a new transmission or distribution line. Allowing the appeal of the assessee the Court held that there was no requirement of capitalization of said expenditure in books of account so as to claim deduction under section 80-IA(4)(iv) of the Act. Followed Bangalore Electricity Supply Company Ltd. v. Dy. CIT (20021) 431 ITR 606 (Karn)(HC). (AY. 2006-07)
Mangalore Electricity Supply Company Ltd. v. Dy. CIT (2022) 136 taxmann.com 428 (Karn.)(HC) Editorial : Notice issued in SLP filed against the order of High Court, Dy. CIT v. Mangalore Electricity Supply Company Ltd. (2022) 286 Taxman 566 (SC)
S. 80IA : Industrial undertakings-Infrastructure development-Electricity distribution-Expenditure on network of a new transmission or distribution line-No requirement of capitalization of said expenditure in books of account-Deduction allowable. [S. 800IA(4)(iv)]