9911796707
TMI Blog2014 (9) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... f the income relatable to the power generated by the Wind Mill that was consumed by the assessee by treating the said income as income derived fromthe eligible undertaking?" 2. The assessee company is a manufacturer of Boilers and in the business of generation of electricity through wind mills. The assessee filed its return of income for the assessment year 2005-06 declaring a total income of Rs. 39,69,73,114/-. In the re-assessment proceedings, the Assessing Officer held that the assessee had claimed benefit of deduction under Section 80IA on the amount of Rs. 38,79,459/-, whereas the assesee was eligible for deduction under Section 80IA only on actual sale of power to Tamil Nadu Electricity Board, ie., 13,36,848/- and disallowed the rema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT V. Thiagrarajar Mills Ltd.), this Court, by order dated 07.06.2010, held as follows: "8. The contention that only whatever power generated from the sale to an outsider or the electricity board, and the profit or gain derived by such sale alone can be taken as profits or gains derived by the assessee as mentioned in section 80-IA(1) of the Income-tax Act has been rejected by the Tribunal in the order impugned. In our con-sidered view, the Tribunal was well justified in having rejected such a stand of the appellant. Having referred to section 80-IA(1) of the Income-tax Act, we are also convinced that what is all to be satisfied in order to be eligible for the deduction as provided under sub-section (1) of section 80-IA, the assessee shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r generated by the assessee from its own power plant would enable the respondent-assessee to derive profits and gains by working out the cost of such consumption of power inasmuch as the assessee is able to save to that extent which would certainly be covered by section 80-IA(1). When such will be the outcome out of own consumption of the power generated and gained by the assessee by setting up its own power plant, we do not find any lack of merit in the claim of the respondent-assessee when it claimed by relying upon section 80-IA(1) of the Income-tax Act by way of deduction of the value of such units of power consumed by its own plant by way of profits and gains for the relevant assessment years." 5. Accordingly, following the above-said ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
