Bandra Kurla Complex, Bandra (E) Mumbai400051 & Cross Objection No. 160/Mum/2014 (निर्धारणवर्ा / Assessment Year: 200607) MSEB Holding Company DCIT 1(2) Ltd. R. No. 535, 5th Floor, ( on behalf of Maharashtra बिधम/ Aayakar Bhavan, M. K. State Electricity Board) Vs. Road, Hongkong Bank Bldg, Mumbai400020. Mahatma Gandhi Rd. Fort, Mumbai400001 स्थायीलेखासं ./ जीआइआरसं ./ PAN/GIR No. AAACM7507P अपीलाथीकीओरसे/ Appellant by : Shri H. N. Sinha, DR प्रत्यथीकीओरसे/Respondentby : Shri Niraj Sheth, AR सुनवाईकीतारीख/ : 06/03/2018 Date of Hearing घोषणाकीतारीख / : 07/03/2018 Date of Pronouncement 2 ITA No, 3559/Mum/2013 & CO No. 160/Mum/2014 Maharashtra State Electricity Board, आदे श / O R D E R Per Shri Sandeep Gosain, Judicial Member: The present appeal as well as cross objection filed by the revenue as well as assessee are against the order of Commissioner of Income Tax (Appeals) 2, Mumbai dated 01.02.13 for AY 200607. 2. Since all the issues involved in the appeal as well as cross objection are common, therefore, they have been clubbed, heard together and a consolidated order is being passed for the sake of convenience and brevity. ITA No. 3559/Mum/2013 (AY 200607) 3. First of all we take up revenue's appeal in ITA No. 3559/Mum/2013 for assessment year 200607 as lead case. The grounds of appeal are mentioned herein below: 1. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating 3 ITA No, 3559/Mum/2013 & CO No. 160/Mum/2014 Maharashtra State Electricity Board, the facts of the case in the light of judgment of the Hon'ble Gujarat High Court in the case of Ahmedabad Electricity Co. Ltd. 262 ITR 97 (Guj.)" 2. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of income of Rs. 101.01 crores accrued to the assessee on account of supplementary bills issued to the customers without appreciating that as per the mercantile system of accounting followed by the assessee, the assessee was liable to offer such income for tax." 3. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made by the A.O. by merely quoting several judicial decisions, without giving any finding as to the facts of the assessee's case to justify the applicability of the ratio of the said judgments. 4. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating ........ (a) that the assessee has admitted that income of Rs. 27 Lakhs had accrued to it but not accounted for the assessment year under consideration and 4 ITA No, 3559/Mum/2013 & CO No. 160/Mum/2014 Maharashtra State Electricity Board, (b) in setting aside this issue to the A.O. without any finding and direction as to its taxability which is not permitted in section 251(1)(a) of the Act." 5. "on the facts and in the circumstances of the case and in law and without prejudice to the Revenue's stand that the addition of the entire amount of Rs. 101.01 crores ought to have been sustained by the Ld. CIT(A), the Ld. CIT(A) erred in not upholding the addition on account of supplementary bills to the extent of Rs. 27 lakhs." The appellant craves leave to add to, amend or withdraw the aforesaid ground of appeal. 4. As per the facts of the present case, the assessee company is engaged in generation, t