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2023 152 Taxmann Com 638 Delhi Trib 21 07 2023 Viney Corporation LTD Vs Assistant

The Assessing Officer declined to allow depreciation on a solar power plant installed in the office premises of the taxpayer. However, the tribunal noted that the high capacity of the plant, 160 Megawatts, indicated it was not solely for office use. The tribunal remanded the matter back to the Assessing Officer to verify if the office was part of a factory building and the electricity was generated for the factory's captive use. If confirmed, depreciation should be allowed according to law.

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58 views2 pages

2023 152 Taxmann Com 638 Delhi Trib 21 07 2023 Viney Corporation LTD Vs Assistant

The Assessing Officer declined to allow depreciation on a solar power plant installed in the office premises of the taxpayer. However, the tribunal noted that the high capacity of the plant, 160 Megawatts, indicated it was not solely for office use. The tribunal remanded the matter back to the Assessing Officer to verify if the office was part of a factory building and the electricity was generated for the factory's captive use. If confirmed, depreciation should be allowed according to law.

Uploaded by

Sricharan R
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© © All Rights Reserved
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[2023] 152 taxmann.com 638 (Delhi - Trib.

)[21-07-2023]

INCOME TAX : Where Assessing Officer declined to allow depreciation on Solar


Power Plant installed in office premises, however, high capacity of plant indicated
it was not solely for office use, matter was to be remanded back to Assessing
Officer for verification and if it was confirmed that office was part of factory
building and electricity was generated for factory's captive use, depreciation was to
be allowed as per law

■■■

[2023] 152 taxmann.com 638 (Delhi - Trib.)


IN THE ITAT DELHI BENCH 'H'
Viney Corporation Ltd.
v.
Assistant Commissioner of Income-tax, Circle-26(2)
KUL BHARAT, JUDICIAL MEMBER
AND M. BALAGANESH, ACCOUNTANT MEMBER
IT APPEAL NO. 1409 (DELHI) OF 2021
[ASSESSMENT YEAR : 2015-16]
JULY  21, 2023 

Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of (Plant and


machinery) - Assessment year 2015-16 - Assessee had installed two Solar Power Plants, one
at Bikaner in Rajasthan, from which electricity was generated and sold to 'Rajasthan
Electricity Board' and another at factory premises in IMT Manesar, Gurgaon -So far, Solar
Power Plant installed at Bikaner, Rajasthan, depreciation had been held to be allowed -
However, in respect of other solar Power Plant, depreciation was declined on basis that
same had been installed in office premises - However, it was found that Solar Power Plant
in question was of 160 Mega Watt capacity and even in wildest of imagination, it could not
be presumed that this was installed for meeting need of office only - Whether considering
fact that Solar Power Plant was of very high capacity and it was stated that office building
was part of factory and electricity so generated was used for factory only, authority below
ought to have verified fact by making field inquiry - Held, yes - Whether therefore, matter
was to be restored to file of Assessing Officer for verification and if Assessing Officer finds
that office was part of factory building and electricity was generated for captive use of
factory, he would allow depreciation as per provision of law - Held, yes [Para 9][Partly in
favour of assessee]
R.K. Kapoor, CA for the Appellant. Ms. Swati Joshi, CIT DR for the Respondent.
ORDER

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