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2010 (1) TMI 939 - AT - Income TaxDisallowance of Bad debts - Held that:- As this is an alternate legal issue of the assessee that if the bad debts claim is not allowed the same may be allowed as business loss - remit this ground to the file of the Assessing Officer with a direction to decide the issue or the claim of the assessee as business loss in accordance with law after providing reasonable opportunity of being heard. Disallowance under section 43B - the learned representatives of the parties submitted that this issue is covered by decision of CIT v. Pamwi Tissues Ltd. [2008 (2) TMI 400 - BOMBAY HIGH COURT] - Held that:- As in CIT v. Alom Extrusions Ltd. [2009 (11) TMI 27 - SUPREME COURT] wherein the judgment of Pamwi Tissues Ltd. (supra) has been reversed - remit this issue back to the file of the AO with a direction to re-decide the issue. Enhancement of income u/s 251(1) by reducing the deduction u/s 80-IA - Held that:- As price charged by the assessee while transferring the manufactured electricity from C.P.P. unit to other unit of the assessee including the electricity tax levied by the State Government on the bill amount at the rate of Re. 0.18 per unit charged by the Tamil Nadu Electricity Board from the consumers on the bill raised was the price ordinarily fetch in the open market, therefore, the CIT(A) was not correct in disallowing claim of assessee under section 80-IA of the Act on this ground Regarding allocation of indirect expenses - Held that:- As for the purpose of deduction under section 80-IA only income derived from industrial undertaking that has to be reckoned in computation as such the income and expenditures which are not directly relatable to that industrial unit cannot but be ignored, in other words, such income and expenditure need not to be considered Regarding miscellaneous income, income from sale of sludge, income from sale of steam - Held that:- The receipt of sale of sludge is the income which is not derived from industrial undertaking. Therefore, deduction under section 80-IA is not allowable. And the steam produced by the assessee is eligible unit is a bye-product and income from sale of steam is the income derived from industrial undertaking, therefore, deduction under section 80-IA is allow-able
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