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2011 (11) TMI 107 - ITAT, BILASPURDetermination of market price of goods or services held for the purpose of eligible business, being transferred to any other business carried on by the assessee. Held that:-The price charged for such transfer should correspond to the market value of such goods or services on the date of transfer, "market value" for this purpose means the price that such goods or services would ordinarily fetch in the open market. In particular case, price at which the State Electricity Board supplies power to its consumers is to be considered to be the market value for transfer of power by the assessee's electricity generating undertaking for captive consumption and not the price at which power is supplied by the assessee to the Board. It is for the reason that the power tariff between the assessee and the SEB is not done in a competitive environment. See Addl. CIT v. Jindal Steel & Power Ltd. (2006 - TMI - 65524 - ITAT Delhi-H). Decided in favor of the assessee. Sale of the Fly Ash Bricks - Operational profit vs Ancillary profit- eligible profits - power generating units - Held that:- Only operational income is an eligible profits and not all ancillary income. Mere existence of some commercial connection by way of raw material to the impugned profits does not make it an eligible income. In said case profits earned on sale of the 'fly ash'(by-product) is different from the profits earned on sale of the bricks made out of the said 'fly ash'. Option is available to the assessee either to sell the said byproduct( resulting in operational income), which the assessee did not prefer in this case, the assessee's decision to opt for the other option to use the said byproduct as raw material for the brick making unit for producing the bricks and earn the profits thereof, does not make the brick making unit as the integral part of the 'power generating unit'. Therefore, the profits earned on sale of the bricks does not constitutes an operational Income of the power unit, an eligible unit for the benefits u/s 80IA of the Act. See Liberty India Ltd. v. CIT (2009 - TMI - 34471 – Supreme Court). Decided against the assessee.
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