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2014 (8) TMI 558 - HC - Income TaxDeduction u/s 80IA – Profit and gain from captive consumption of electricity - Whether the electricity unit is an undertaking for the purpose of Section 80-IA and whether "profit and gain" from captive consumption of electricity supplied from the generator set and which cannot be sold to any third person will qualify for deduction u/s 80-IA – Held that:- Sub-section (10) would not be directly applicable which relates to captive consumption, the provision postulates re-working of the profits in cases where more than expected profits stand declared by the eligible undertaking because of proximity and close connection between the eligible undertaking and the persons to whom goods and services were supplied – Relying upon CIT Vs. Orissa Cement Ltd. [2001 (11) TMI 60 - DELHI High Court] - Revenue’s submission that one cannot earn profit by indulging in the business with oneself, was rejected to negate the claim. The finding of the Tribunal that the profits derived by the respondent-assessee’s power generation unit would be eligible for deduction as a separate undertaking u/s 80IA - the Tribunal has passed an order of remand on the question of computation of profit and gain from business in terms of sub-section (8) to Section 80IA - the AO is competent to decide the question as per law and the hands and power of the AO have not been curtailed and the order does not give any specific or clear finding/direction – Decided against Revenue.
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