9911796707
TMI Blog2017 (5) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Revenue affirmed the order passed by learned Commissioner of Income Tax(Appeals). Learned Income Tax Appellate Tribunal after discussing the entire issue on merits arrived at the conclusion that income from generation of power, may that be in the nature of captive generation, make the assessee entitled for deduction under Section 80-IA of the Income Tax Act, 1961 in respect of notional income from generation of electricity which was captively consumed by the assessee itself in another unit of the same company. The discussion made by learned Tribunal in the judgment impugned reads as follows:- "7. On careful analysis of the order passed by the AO, it is seen that the AO has not at all considered the intention of the provisions cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(13) of the I.T. Act which is an inclusive definition comprehending trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. This clause clearly shows that the activity of 'manufacture' is also a business by applying this definition to the provision contained in Explanation (4) to sub-section (2) of sec. 115JA(ii). There is no requirement for sale of commodity in order to constitute a business as mentioned therein. Impliedly, the manufacture itself is a business. Undisputedly, in the case in hand, the assessee has produced power in two units during the period under consideration and supplied the entire generated power for running of other units of the assessee. So, this is a business as co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Company's Act as having been properly maintained in accordance with Company's Act and thereafter he has the limited power of making increases and reductions as provided in Explanation below sec.115JAA of the Act. In this case, the ld. CIT(A), however, did not limit his scope the powers as laid down by the dictum of Hon'ble Apex Court and carried adjustment which was not permitted by sec.115JAA of the Act by reducing the profits which were not part of the book profit on account of sale/transfer of electricity by assessee's two units to other units of the company. 9. We have examined the aforesaid contention carefully. It is correct that the AO and, for that matter, even the ld. CIT(A) are not entitled to alter the profit and loss accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, book profit of which is found to have been taken as a basis for computing deemed income for the year under consideration. Hence we are of the considered opinion that the ld. CIT(A)'s order is not infirm in any way requiring any interference. Hence the same is hereby upheld by finding the issue raised by the department as devoid of merits and dismiss the same." It is submitted by Mr. Sanjay Jhanwar, learned counsel appearing on behalf of assessee that the issue under adjudication is no more res integra in view of the judgment of Hon'ble Supreme Court in Civil Appeal No.3461/2010; Commissioner of Income Tax, Delhi Vs. M/s. DCM Shriram Consolidated Ltd. This Court under the order dated 28.04.2011 formulated a substantial question ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
