Ita/9/2021 Of Principal Commissioner Of Income Tax-1 v. Orissa Hydro Power Corporation Ltd

Order No. 02. IN THE HIGH COURT OF ORISSA AT CUTTACK ITA No.09 of 2021 …. Appellant Principal Commissioner of Income Tax-1, Bhubaneswar Mr. Tushar Kanti Satapathy, Senior Standing Counsel -versus- ….Respondent Orissa Hydro Power Corporation Ltd., Bhubaneswar CORAM: THE CHIEF JUSTICE JUSTICE M.S. RAMAN ORDER 31.01.2023 I. A. No.20 of 2021 1. For the reasons stated in the application, filing of certified copies of orders under Annexures-2 and 3 are dispensed with. The application is allowed. ITA No. 9 of 2021 2. The Revenue has filed this appeal against an order dated 25[th]February, 2020 passed by the Income Tax Appellate Tribunal, Cuttack Bench, Cuttack (ITAT) in ITA No.115/CTK/2014 as well as ITA No.122/CTK/2014—one appeal being filed by Revenue Department (ITA No.115/CTK/2014) and the other being filed by the Assessee (ITA No.122/CTK/2014). 3. The question sought to urge for consideration by this Court in the present appeal is whether the ITAT was right in holding that with the Assessee having followed the mercantile system of accounting, the provision for liability under the head ‘dam maintenance’ is an admissible expenditure? M. Panda 4. The ITAT-Tribunal has answered the above issue in favour of the Assessee. In doing so, a reference was made to an earlier order dated 20[th] September, 2017of the Tribunal itself on the same issue in the case of OMC Ltd (ITA No.177/CTK/2013). Reference was also made to the correspondence with the Government which showed that the demands were being made in respect of the dam maintenance charges as ‘early payment.’ 5. Adopting the rule of consistency, the CIT (A) in its order dated 1[st] January, 2014 and the Tribunal in the impugned order have held in favour of the Assessee and against the Revenue. 6. In that view of the matter, the Court is not inclined to frame the question as urged by the Revenue in the present case. The appeal is accordingly dismissed. (Dr. S. Muralidhar) Chief Justice (M.S. Raman) Judge