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2019 (11) TMI 1696 - ITAT CHENNAIDeductions u/s.80IA - Computation of deduction - For the purpose of quantification, the assessee had adopted a cost of ₹ 5.50 paise per unit which was the rate at which the Tamil Nadu Electricity Board was supplying electricity to the assessee - HELD THAT:- By investing in the wind mill, the assessee has saved itself from the cost of purchasing power from the Tamil Nadu Electricity Board. Obviously, it is what the assessee saves that is to be considered and not the price at which the Tamil Nadu Electricity Board would have purchase power from the assessee’s wind mill. The Tamil Nadu Electricity Board could purchase power at ₹ 2.90 paise per unit and then there would be add-on cost and service charge which would result in the cost of power reaching to ₹ 5.50 per unit cost to the assessee. Differential would be the actual infrastructural cost incurred by the Tamil Nadu Electricity Board. Contrary to the infrastructure of TNEB is the infrastructural cost of the assessee representing the investment in the wind mill which is a depreciable asset also. Therefore, it is not the price at which the Tamil Nadu Electricity Board would purchase the power from the assessee that is to be adopted but the price and costs that the assessee saves by making the investment and doing captive consumption. Assessing Officer is directed to re-compute the deductions u/s.80IA by adopting the figure of ₹ 5.50 per unit as against ₹ 2.90 per unit adopted by the Assessing Officer - Decided in favour of assessee.
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