Electricity is covered within the meaning of ‘article or thing’ for the purpose of section 32(1)(iia) and the machinery acquired and installed for generation of thermal power is eligible for additional depreciation under the said clause. Follows Supreme Court in the case of Andhra Pradesh vs. NTPC Ltd. AIR 2002 SC 1895 wherein it was held that electricity is goods for the purpose of sales tax. (AY. 2011-12)
PCIT v. NTPC SAIL Power Co. (P) Ltd. (2019) 178 DTR 53 / 103 taxmann.com 398 / 308 CTR 838 (2020) 428 ITR 535/ 308 CTR 838 (2020) 428 ITR 535 (Delhi)(HC)
S. 32 : Depreciation–Plant and machinery installed for generation of power is eligible for additional depreciation under clause (iia) as electricity is covered in the meaning of ‘article or thing’. [S. 32(1)(iia)]