COMMISSIONER OF INCOME TAX Vs. RELIANCE ENERGY LTD

JUDGEMENT

(1.) THIS appeal by the Revenue under Section 260A of the Income Tax Act, 1961 (the Act) challenges the order dated 14.05.2010 of the Income Tax Appellate Tribunal (the Tribunal) relating to the Assessment Year 20012002.

(2.) THE order dated 14.05.2010 of the Tribunal disposes of two appeals of the revenue for assessment year 200102 and 200304. The issue arising in both the assessment years is with regard to reopening of assessment under Section 147 and 148 of the Act. However the two appeals with regard to assessment years 200304 (being appeal No.6792 of 2010) and the present appeal are being disposed of by separate orders as appeal No.6792 of 2010 with regard to assessment year 200304 deals with reopening of assessment a period within 4 years from the end of the relevant assessment year. While this appeal is with regard to reopening of assessment beyond a period of 4 years from the end of the relevant assessment year 200102.

(3.) THE respondentassessee is engaged in the business of generation and distribution of electricity. Originally the respondent was engaged only in the distribution of electricity in Mumbai. However, with effect from assessment year 199697 it commenced generation of electricity from its plant at Dahanu. As a consequence of establishing of plant for generation of electricity the respondent became entitled to deduction under Section 80IA of the Act.