The case ITA No. 1409/DEL/2021 examines the dispute between Viney Corporation Ltd. and the Assistant Commissioner of Income-Tax (ACIT), Circle-26(2), New Delhi regarding depreciation claims on solar power plants for the assessment year 2015-16.
Viney Corporation Ltd., located in New Delhi, faced an assessment order under section 143(3) read with section 144C(13) of the Income Tax Act, 1961 for the assessment year 2015-16, which led to significant additions to the returned income due to disallowed depreciation claims.
The primary issues in the appeal included the correctness of the disallowance of depreciation and additional depreciation on solar power plants installed at Bikaner & Manesar, and the taxation of foreign exchange fluctuations related to an external commercial borrowing (ECB).
On July 21, 2023, the tribunal delivered a judgment that addressed several critical aspects of the case. The tribunal acknowledged the complexity of the issues, particularly the depreciation claim on solar power installations, which were crucial for the company’s operations and environmental commitments.
The tribunal’s decision highlights the nuanced interpretation of tax laws relating to depreciation of assets and the impact of such decisions on corporate tax liabilities. It also reflects on the broader implications for businesses investing in sustainable and renewable energy sources under the Indian tax regime.
This case serves as an important precedent for issues related to asset depreciation and renewable energy investments in India, offering valuable insights for businesses and tax professionals alike.
Viney Corporation Ltd. vs ACIT Delhi: Depreciation Dispute for AY 2015-16
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