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TMI Blog2018 (6) TMI 1503X X X X Extracts X X X X X X X X Extracts X X X X ..... nce. 2. Briefly the facts as taken from AY 2011-12 being ITA No. 465/Hyd/2018 are that assessee company, engaged in the business of generation and sale of power, filed its return of income on 30/09/2011 admitting total income of Rs. 6,05,23,648/- after claiming deduction u/s 80IA of Rs. 58,33,52,874/- under normal provisions of IT Act and book profit u/s 115JB at Rs. 42,66,26,770/-. The AO after following the due process of law, completed the assessment u/s 143(3) of the Act determining the total income of Rs. 6,43,38,571/- n by disallowing an amount of Rs. 38,14,923/-, which relates to sale of sludge/waste oil claimed by the assessee u/s 8A as business income. AO was of the view that sale receipts of sludge/waste oil is only incidental no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vity and is held to be directly attributable to the business activity of the assessee. Hence, we are of the firm view that the profits and gains derived by the assessee from the sale of sludge/waste oil is eligible for deduction under section 80IA of the Act and we do not find any infirmity in the order of the Ld. CIT(A) and accordingly, we confirm the same". Respectfully following the ratio of the decision of the Hon'ble ITAT cited supra, I direct assessing officer to allow the claim of deduction u/s 80lA of IT Act." 4. Aggrieved by the order of CIT(A), the revenue is in appeal before us raising the following grounds of appeal, which are common in all the appeals under consideration: 1. The Commissioner of Income Tax (Appeals) e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arcel of business of the assessee and is eligible for deduction u/s 80IA of the Act. We find that similar issue has been decided by the coordinate bench of this Tribunal in assessee's own case for AY 2010-11 in ITA No. 666/Hyd/2015, order dated 28/08/2015 wherein the bench has observed as under: "7. We have heard the arguments of both the sides and also perused the relevant material on record. As could be seen from the facts of the case, the assessee company is in the business of power generation with its plant located in Tamilnadu and power supply to Tamilnadu Electricity Board. The claim of the assessee for deduction under section 80IA for the year under consideration was Rs. 51,83,44,409 and the income generated from sale of sludge was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dred percent of the profits and gains derived from such business for ten consecutive assessment years. Section 80HH : "Where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking or the business of a hotel, to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to twenty per cent thereof." 7.1. From the careful perusal of above provisions, it is noticed that section 80HH refers to the profits and gains derived from an industrial undertaking, whereas, provisions of section 80IA refers to profits and gains derived ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om such business considered to include the sale of sludge, which is the product of the business undertaken by the assessee i.e., manufacture of power and the sludge is generated out of such activity and is held to be directly attributable to the business activity of the assessee. Hence, we are of the firm view that the profits and gains derived by the assessee from the sale of sludge/waste oil is eligible for deduction under section 80IA of the Act and we do not find any infirmity in the order of the Ld. CIT(A) and accordingly, we confirm the same." As the issue under consideration is materially identical to the AY 2010-11, ld. CIT(A) by following the order passed by the ITAT in assessee's own case for AY 2010-11 (supra), allowed the clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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