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TMI Blog2014 (2) TMI 1351X X X X Extracts X X X X X X X X Extracts X X X X ..... on 80-IA in order to avail the benefits provided therein. Therefore, the contention based on the interpretation of the expression 'derived from' can have no application to the case where the provisions of section 80-IA get attracted - Decided against revenue. - I.T.A.No.2438/Mds/2005 /Assessment Year : 2002-03 - - - Dated:- 27-2-2014 - Shri A.Mohan Alankamony And Shri Challa Nagendra Prasad, JJ. Appellant by: Mr. N.Madhavan, JCIT Respondent by: Mr. R.Vijayaraghavan, Advocate ORDER Challa Nagendra Prasad, This appeal is filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-III, Chennai dated 31.08.2005. 2. At the time of hearing, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed under section 80-IA of the Act on generation of power through windmill stating that it is only transfer of EB grid and there is no element of sale. The Commissioner of Income Tax (Appeals) decided the issue in favour of the assesseee and directed to allow relief under section 80IA and while doing so, the Commissioner of Income Tax (Appeals) followed the decision of his predecessor in the assessee s own case for the assessment year 1996-97 vide order in ITA No.364/2002-03 dated 6.8.2004 observing as under:- 5. The next ground of appeal is against the disallowance of deduction claimed u/s.80-IA. The Assessing Officer stated that the deduction claimed u/s.80IA for ` 76,86,602/- towards generation of power through windmill s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal to decide the issue on merits. 5. We have also perused the decision of the jurisdictional High Court in the case of Tamil Nadu Petro Products Ltd. Vs. ACIT (supra) and find that this issue in appeal is squarely covered by the Hon ble jurisdictional High Court, wherein it was held as under:- The issue is directly covered by the decision of this Court dated 7-6-2010 in Tax Case (Appeal) Nos. 68 to 70 of 2010. The substantial question of law raised in these appeals was: Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled to deduction under section 80-IA of the Income-tax Act in respect of notional profits on account on p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which the provisions contained in section 80-IA(1) can be interpreted. The expression 'derived' used in the said section 80-IA(1) in the beginning as well as in the last part of sub-section (4) makes it abundantly clear that such profit or gain could be obtained by one's own consumption of the outcome of any such undertaking or business enterprise as referred to in sub-section (4) of section 80-IA. The dictionary meaning of the expression 'derive' in the New Oxford Dictionary of English states 'obtaining something from a specified source'. In section 80-IA(1) also no restriction has been imposed as regards the deriving of profit or gain in order to state that such profit or gain derived only through an outsid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In our considered opinion, the said contention can have no application to the case on hand. Inasmuch as we dealt with the issue in the light of section 80-IA and in particular sub-clause (iv) of the said section which provides for the benefit even in respect of electricity generation plant established by the assessee and the income derived from such enterprise of the assessee, it will have to be held that the assessee fully complied with the requirements prescribed under section 80-IA in order to avail the benefits provided therein. Therefore, the contention based on the interpretation of the expression 'derived from' can have no application to the case where the provisions of section 80-IA get attracted. 6. Respectful ..... X X X X Extracts X X X X X X X X Extracts X X X X
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