IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री रवीश सूद, माननीय न्याययक सदस्य एवं श्री एस बालाकृष्णन, माननीय लेखा सदस्य SHRI RAVISH SOOD, HON’BLE JUDICIAL MEMBER AND SHRI S BALAKRISHNAN HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./I.T.A.No.191, 192, 193, 194, 195, 196 & 197/Viz/2024 ( निर्धारण वर्ा/ Assessment Year:2016-17, 2015-16, 2013-14, 2016-17, 2017-18, 2018-19 & 2020-21)

Andhra Pradesh Power VS. Deputy Commissioner of Generation Corporation Limited, Income Tax, Vijayawada. Circle-1(1), PAN: AACCA2734J Vijayawada.

(अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

करदधतधकधप्रनतनिनर्त्व/ : Shri M. Chandramouleswara Rao, CA Assessee Represented by रधजस्वकधप्रनतनिनर्त्व/ : Dr.Satyasai Rath, CIT-DR Department Represented by सुिवधईसमधप्तहोिेकीनतनि/ : 22/07/2025 Date of Conclusion of Hearing घोर्णध की तधरीख/ : 20/08/2025 Date of Pronouncement

ORDER

PER BENCH:

All the captioned appeals filed by the assessee against the respective orders of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (in short “Ld. CIT(A)”). All these appeals are pertaining to one assessee, the facts are common and grounds are identical and similar. Therefore, all these appeals are clubbed, heard together and disposed of in this consolidated order.

Appeal wise adjudication is given in the following paragraphs.

2. Firstly, we shall take up ITA No. 197/Viz/2024 (AY: 2020-21) as a lead appeal and the facts are culled out there from.

ITA No. 197/Viz/2024 (AY: 2020-21)

3. This appeal is filed by the assessee against the order of the Ld. CIT(A) in DIN & Order No. ITBA/NFAC/S/250/2023-24/1063492163(1), dated 27/03/2024 arising out of the order passed U/s. 143(3) of the Income Tax Act, 1961 (in short “the Act”), dated 30/09/2022 for the AY

2020-21.

4. Brief facts of the case are that the assessee is engaged in the business of power generation and distribution in the State of Andhra Pradesh. The assessee filed its return of income on 23/12/2020 declaring a loss of Rs. 775,65,54,250/-. The return was summarily processed U/s. 143(1)(a) of the Act on 24/12/2021 determining the total loss at Rs. 767,34,29,796/-. Subsequently, the case was selected for scrutiny under CASS and statutory notices have been issued and served on the assessee calling for the details and the assessee has furnished the details from time to time before the Ld. AO. After examining the submissions made by the assessee, the Ld. AO observed that the assessee has realized sale proceeds from Fly Ash / Ash products amounting to Rs. 171,62,18,905/-. The submission of the assessee that the assessee is governed by the Notification under the Environment Protect Act, 1986 issued by the Ministry of Environment and Forests, Government of India dated 03/11/2009 and 25/01/2016 and therefore, it cannot be considered as a revenue income of the assessee as it has to be deposited in a Environment Protection & Fly Ash Fund (EP&FF) and to be kept in a separate account. The assessee also required to file an annual implementation report to the Pollution Control Board. It was the contention of the assessee that the assessee does not have a right to utilize this fund for any business operations as it is being monitored by the Ministry of Environment and Forests, Government of India. The Ld. AO observed that the sale proceeds of Fly Ash / Ash products is part and parcel of routine business activities of the assessee and thereafter, proceeded to add an amount of Rs. 171,62,18,905/- to the total income of the assessee. Considering the submissions made by the assessee to the Ld. AO regarding disallowance U/s. 14A of the Actwith respect to the dividend income which is exempt, earned by the assessee, the Ld. AO proceeded to disallow the amount of Rs. 10,82,12,042/- where the average value of the investment computed at Rs. 1082,12,04,267/-. Further, the Ld. AO also did not accept the submissions made by the assessee on the expenditure incurred towards water charges, Police Gua