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TMI Blog2014 (6) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee from the sale of goods manufactured by the industrial undertaking constituted a component of the profits and gains derived from the eligible business - The purchaser, on account of the delay in payment of the sale price also paid interest to the assessee - This formed a component of the sale price also paid interest to the assessee - This formed a component of the sale price and was paid towards the lag which had occurred in the payment of the price of the goods sold by the assessee - the payment of interest on account of the delay in payment of the sale price of the goods supplied by the undertaking partook of the same nature and character as the sale consideration – thus, the direction given by the learned Commissioner (Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the purpose of deduction u/s 80IA. 2. The assessee has claimed deduction under section 80IA for Rs. 1,74,63,434, in respect of its power generation project no.1 at Satara and Supa, Maharashtra and another sum of Rs. 4,02,65,561 in respect of its power generation unit at Soda Mada, Rajasthan. On a perusal of the Profit Loss account, the Assessing Officer has noted that the assessee has credited a sum of Rs. 10,41,315, on account of interest income in respect of which it has claimed deduction under section 80IA, as per the audit report in form 10CCB. The Assessing Officer held that the interest income cannot be said to have derived from the business activity of the assessee industrial unit undertaking engaged in power generatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , has held that such an interest partakes the nature and character of sale proceeds and is also eligible for deduction under section 80IB. 5. Learned Departmental Representative strongly relied upon the findings of the Assessing Officer. 6. After carefully considering the rival submissions and also the facts and material on record, we find that the assessee is engaged in the business of generation of power from windmill and sale thereof. The assessee has sold its power generated from its windmill to Maharashtra State Electricity Distribution Co. Ltd. The said company did not pay full consideration to the assessee from the period from January 2002 to April 2003. Thereafter, in terms of Appellate Tribunal For Electricity, New Delhi, vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest to the assessee. This formed a component of the sale price and was paid towards the lag which had occurred in the payment of the price of the goods sold by the assessee. On these facts, therefore, the payment of interest on account of the delay in payment of the sale price of the goods supplied by the undertaking partook of the same nature and character as the sale consideration. 7. Thus, the ratio decidendi decided by the Jurisdictional High Court on similar set of facts, is also squarely applicable to the facts of the present case and respectfully following the said decision of the High Court, we hold that the direction given by the learned Commissioner (Appeals) is legally and factually correct and the same is upheld. Thus, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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