Uttar Gujarat Vij Company Ltd. vs. DCIT & ACIT vs. Uttar Gujarat Vij Company Ltd.

Parties Involved

Facts Summary

The case involves cross appeals filed by Uttar Gujarat Vij Company Ltd. and the Department against the order of the Commissioner of Income Tax (Appeals) for assessment years 2016-17 to 2018-19. The assessee has raised several grounds of appeal, including issues related to the disallowance of depreciation on assets, treatment of interest income, eligibility for additional depreciation, and the charging of interest under various sections of the Income Tax Act. The Tribunal has considered these grounds and has partly allowed the appeals for statistical purposes, directing the Assessing Officer to consider the issues afresh.…

Legal Issues

• 1. Disallowance of depreciation on assets after reducing the amount of Capital Grants & Subsidies and Consumers' Contribution from the cost of relevant Fixed Asset.
• 2. Treatment of interest income on advances to staff as 'income from other sources' instead of 'business income'.
• 3. Eligibility for additional depreciation under Section 32(1)(iia) of the IT Act.

Judgment Outcome

Decided in favour of Revenue.

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