Commissioner Of Income Tax, Karnataka vs M/S. Karnataka Power Corporation

The Supreme Court upheld the High Court's decision affirming the Tribunal's ruling that the generating station building qualifies as 'plant' for investment allowance under Section 32 of the Income Tax Act. The Court found that the building is integral to the generating system, thus allowing the assessee to claim investment allowance. The Court also confirmed that interest receipts and hire charges are capital receipts reducing capital cost, and work-in-progress is to be treated as opening capital for relief under Section 80J.