Supreme Court of India
National Hydroelectric Power Corpn. Ltd. v. Commissioner of Income Tax
INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.
What the Court ordered
We hold that AAD is a timing difference, it is not a reserve, it is not carried through profit and loss account and that it is "income received in 8 advance" subject to adjustment in future and, therefore, clause (b) of Explanation-I to Section 11 SJB is not applicable.
Judgment, page 6
From the headnote
Income Tax Act, 1961: s.115JB, Explanation-I Clause (b) - Applicability of - Advance against depreciation -(AAD) - Held: AAD is a timing difference - It is not carried to profit and loss account - It is income received in advance subject to adjustment in future and not a reserve and hence clause (b) of Explanation (I) to s. 115JB is not applicable. Assessee is supplier of electricity at notified tariff rate. The sale price included Advance against Depreciation (AAD) which is shown by assessee as sales in its profit and loss account. While computing the book profit, assessee deducted the AAD
Sign in free to read it
- The full judgment, page by page, as published in the Supreme Court Reports
- The ratio: what the Court held, verbatim, with the page it sits on
- Every bench that relied on it, and every bench that argued against it
- Search every reported judgment, by party, citation or question
- Download the PDF, copy pinpoint citations ready for a filing
An email address, no password.