2012 (6) TMI 893 - AT - Income Tax

Summary

Issues involved: Challenge to allowance of deduction u/s. 80IA of the Income-tax Act, 1961 on captive power generation plant.

Issue 1: Challenge to deduction u/s. 80IA
- The Revenue challenged the allowance of deduction claimed u/s. 80IA by the CIT(A) on the captive power generation plant of the assessee.
- The Assessing Officer disallowed the claim of deduction u/s. 80IA on the basis that the paper mill, boiler unit, and turbine constitute one single industrial undertaking.
- The CIT(A) upheld the claim of the assessee for deduction u/s. 80IA in respect of the captive power generation undertaking and 9.5 MW turbine power undertaking.
- The ITAT Hyderabad Bench in earlier assessment years had allowed the claim of deduction u/s. 80IA in the assessee's own case.
- The CIT(A) directed the AO to compute the profits of the undertakings as per the guidelines contained in the ITAT order and allow the deduction u/s. 80IA for the assessment year in question.

Conclusion:
- The ITAT Hyderabad Bench found that the issue was squarely covered by its earlier orders in the assessee's own case for previous assessment years.
- The order passed by the CIT(A) was upheld, and the grounds raised by the Revenue were dismissed.
- The appeal by the Revenue was ultimately dismissed on 15th June, 2012.