ACIT Vs UniDeritend Limited – Reimbursement of Actual Cost
The subsidiary estimates the cost of wind energy project up to Rs. 1189.87 lakhs. Maharashtra Government set up one policy for supporting or encouraging the production of power from beginning to end by non conservative sources so as to enhance the constantly rising demand of the electrical energy in the circumstances, the wind energy project or plan has given the approval to small scale industries and the state government has offer the capital subsidiary up to 30% so that wind power plant will operate successfully with a smallest amount of 12% for one year.
ACIT Vs UniDeritend Limited
This assessed are set according to the capital financial support that had settled to the estimated during the economic year 2007-2008 on RS.20 lakh. Throughout the financial year, it is require the estimated to refund the financial assistance to the level of RS.10 lakhs. The AO Experiential that, estimate had previously claimed 100% reduction on the windmill and in isolation the financial support had required to it decrease from the charge of benefit, thus it receive the advantage of 10 lakh rupee.
The AO more over observed that even though the Written down Value” of the asset was Zero, then also subsidy had required to pay the tax. In demand, the CIT (A) detained that since 100% downgrading was permitted to the assessee on the positive feature itself, for this reason the subsidy had get benefit and required to pay the charge beneath the segment 41 (1) of the work. In addition to this, the committee has appeal for:
- in CIT opposed to Reliance industry ltd the Bombay High court, at the same time rely ahead the judgment of the supreme court in the cabinet of CIT against Ponni Sugars and chemicals Ltd has detained so as to set up the new component toward the back areas in order to create employment in that region, after that financial backing had been started treating like a capital account and sales tax inducement had been treating as a capital acknowledgment.
- As per the government policy or plan the financial support is not set for the reason of gaining asset. The condition for this is that the estimate must be required to set up for wind energy project and also that this plant ought to be operate effectively with a least amount of 12% for loading this plant for at least 1 year. After successfully settling down this plant with minimum of 12% for one year, the assessee had functional for capital funding, which issue to accomplishment of certain circumstances that eventually free to the candidate throughout the financial year of 2007-08 on 20 lakh. But from these 20 lakhs, 10 lakhs had been returning to the government.