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2013 (9) TMI 150 - ITAT CHENNAIDeduction u/s 80IA in respect of windmill undertaking - determination of price - book adjustments u/s 115JB - Held that:- assessee can either captively consume the electricity generated or can sell the same to the Tamil Nadu Electricity Board at Rs. 2.70 per unit. The assessee is refrained from directly selling generated electricity to the consumers. The assessee has no other option but to sell the electricity generated to the Tamil Nadu Electricity Board at the predetermined rates. The assessee cannot charge higher rate from the Tamil Nadu Electricity Board. On the contrary, the Tamil Nadu Electricity Board sells the electricity procured from the assessee and similarly situated power generating units at Rs. 3.50 per unit to the industrial consumers. The market rate of electricity is not determined by the forces of demand and supply, rather the same is regulated by the Government. The Tamil Nadu Electricity Board which is a State Government undertaking is selling the electricity to the ultimate consumers, therefore, the rate at which the consumers get electricity is the market rate. Thus, it can be safely concluded that market rate of the electricity is Rs. 3.50 per unit. Assessee can either captively consume the electricity generated or can sell the same to the Tamil Nadu Electricity Board at Rs. 2.70 per unit. The assessee is refrained from directly selling generated electricity to the consumers. The assessee has no other option but to sell the electricity generated to the Tamil Nadu Electricity Board at the predetermined rates. The assessee cannot charge higher rate from the Tamil Nadu Electricity Board. On the contrary, the Tamil Nadu Electricity Board sells the electricity procured from the assessee and similarly situated power generating units at Rs. 3.50 per unit to the industrial consumers. The market rate of electricity is not determined by the forces of demand and supply, rather the same is regulated by the Government. The Tamil Nadu Electricity Board which is a State Government undertaking is selling the electricity to the ultimate consumers, therefore, the rate at which the consumers get electricity is the market rate. Thus, it can be safely concluded that market rate of the electricity is Rs. 3.50 per unit - Following decision of Sri Velayudhaswamy Spinning Mills P. Ltd. v. Deputy CIT [2011 (7) TMI 965 - ITAT CHENNAI] - Decided in favour of assessee.
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