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2019 (7) TMI 541 - HC - Income TaxDisallowance u/s 14A read with Rule 8D - excess of own funds - recording satisfaction with the correctness of the claim of the assessee - HELD THAT:- The language of Section 14A of the Act is plain and clear. Before invoking Rule 8D, the Assessing Officer is obliged to indicate that having regard to the accounts of the assessee, he is not satisfied with the correctness of the claim of the assessee in respect of such expenditure in relation to the income which does not form part of the total income under the Act. To put it in other words, the condition precedent of recording the requisite satisfaction which is a safeguard provided in Section 14A should not be overlooked before going to Rule 8. In such circumstances we are not impressed by the submission canvassed on behalf of the Revenue that once there are mixed funds, Rule 8 would be attracted automatically. We are of the view that the ITAT rightly relied on the decision of the Bombay High Court in the case of CIT Vs. Reliance Utilities & Power Ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT] as given a clear finding that the assessee had interest free funds of its own As decided in CORRTECH ENERGY PVT. LTD. [2014 (3) TMI 856 - GUJARAT HIGH COURT] assessee did not make any claim for exemption of any income from payment of tax - It was on this basis that the tribunal held that disallowance under section 14A of the Act could not be made MAT computation - disallowance under section 14A in computing the book profit - HELD THAT:- No error could be said to have been committed by the ITAT in taking the view that no addition in the book profit can be made on the basis of the calculations worked out under section14A Deduction u/s 80IA( 4) at the rate on which the GEB supplied power to its customers - generation of power for captive consumption - HELD THAT:- This issue is directly covered by the decision of this Court in the case of CIT Vs. Gujarat Alkalies and Chemicals [2016 (10) TMI 1111 - GUJARAT HIGH COURT] for the purposes of deduction under Section 80IA in case of the eligible business as if the transfer had been made at the market value of such goods or services. It is in this context that the question of substituting the actual consideration by the market value comes into picture. We may notice that the Tribunal did not accept the contention of the assessee that the electricity is neither goods nor services and that, transfer of electricity, therefore, would not be covered under subSection (8) of Section 80IA of the Act. However, in so far as the Tribunal's reasoning to adopt the market value of the goods at ₹ 5.40 ps. per unit is concerned, we find no error. Income from the Carbon Credits - revenue or capital receipts - HELD THAT:- As decided in ALEMBIC LIMITED [2017 (9) TMI 189 - GUJARAT HIGH COURT] Receipts of carbon credit are in nature of revenue receipts. See CIT v. Subhash Kabini Power Corporation Ltd. [2016 (5) TMI 793 - KARNATAKA HIGH COURT] ) and Commissioner of Income tax v. My Home Power Limited [2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT] - Tax appeal is dismissed. Disallowance on account of the late payment of employees contribution towards the PF/ESI under section 36( 1)(va) r/w. 2(24)(x) - payment before or after due date - HELD THAT:- From the explanation of the assessee, it is discernible that it has made payment before the due date, but on account of certain technical objection, cheques deposited have been returned, which ultimately after removal of objection was cleared. Thus, it could be construed that payment was within the due date and therefore, deduction ought to be granted to the assessee Short term capital gain due to the Slump Sale of Wind Energy Business - HELD THAT:- This issue is also squarely covered by the decision of this Court in the case of Commissioner of Income tax Vs. Gauranginiben S. Sodhan Indl. Reported [2014 (2) TMI 78 - GUJARAT HIGH COURT] held that income chargeable under the Head Capital Gains, shall be computed by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset, the amounts mentioned therein that is the expenditure incurred wholly and exclusively in connection with such transfer and the cost of acquisition of the asset and the cost of any improvement thereto. Main thrust of section 48 of the Act, therefore, is the full value of consideration received or accruing as a result of the transfer of the capital asset as reduced by expenditure mentioned therein and the cost of acquisition of the asset. Section 55A, as we have noticed, refers to the reference to DVO for ascertaining the fair market value of a capital asset. Such ascertainment of fair market value with the aid of the DVOs report would have no relevance for the purpose of determining full value of consideration received or accruing as a result of the transfer of the capital asset for the purposes of section 48 - reference to DVO for ascertaining the fair market value of the capital asset as on the date of the sale in the present case would be wholly redundant. Date of transfer of the Wind Energy Business of GFL to IRL on slump sale is 30/03/2012 - HELD THAT:- This question is corelated to the question aforesaid and squarely covered by Gauranginiben S. Sodhan (supra). ITAT committed no error in passing the impugned order. - Decided against revenue
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