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Tata Power triumphs over MERC in tax dispute
3 Aug
Summary
- APTEL ruled in favor of Tata Power against MERC's tariff order.
- Property tax was incorrectly disallowed as an operation expense.
- Income tax was also wrongly disallowed for FY08 to FY14.
The Appellate Tribunal for Electricity (APTEL) has ruled in favor of Tata Power in a significant appeal concerning the Maharashtra Electricity Regulatory Commission's (MERC) 2016 Multi-Year Tariff (MYT) order. APTEL determined that MERC had made incorrect disallowances regarding property tax and income tax. Specifically, the tribunal found that property tax should have been recognized as an uncontrollable operation and maintenance expense. Additionally, income tax for the period spanning fiscal years 2008 through 2014 was also incorrectly disallowed by MERC. This judgment represents a favorable outcome for Tata Power in its challenge against the regulatory commission's tariff determination for the specified period.
