TMI Blog2024 (1) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... n the contrary, the rate at which the State Electricity Board supplied power to the industrial consumers has to be taken as the market value for computing deduction under Section 80 IA of the Act. We hold that the Tribunal had rightly computed the market value of electricity supplied by the captive power plants of the assessee to its industrial units after comparing it with the rate of power available in the open market i.e., the price charged by the State Electricity Board while supplying electricity to the industrial consumers. Therefore, the High Court was fully justified in deciding the appeal against the revenue. Deduct the cost of reject coal and iron ore fine dust for determining the disallowance to be made u/s 80IB - Bearing in mind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Supreme Court in Commissioner of Income Tax v. M/s. Jindal Steel Power Ltd. [2023 SCC OnLine SC 1632] 73. Thus, market value of the power supplied by the assessee to its industrial units should be computed by considering the rate at which the State Electricity Board supplied power to the consumers in the open market and not comparing it with the rate of power when sold to a supplier i.e., sold by the assessee to the State Electricity Board as this was not the rate at which an industrial consumer could have purchased power in the open market. It is clear that the rate at which power was supplied to a supplier could not be the market rate of electricity purchased by a consumer in the open market . On the contrary, the rate at which the St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act is totally misplaced inasmuch as sub-section (6) was inserted in the statute with effect from 01.04.2009 whereas in the present case we are dealing with the assessment year 2001-2002 when this provision was note even borne. 3. We are apprised that when an identical question was raised in ITA 208/2019 inter partes, the Court had on a perusal of the view taken by the ITAT found that no justification existed for the question in that respect being framed or considered. We, in this regard take note of the order dated 06.03.2019 passed in ITA 208/2019 and consequently observe that proposed question (a) would not give rise to any substantial question of law. 4. That only leaves us to consider whether to admit the appeal on question (b). In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, we have considered the submissions of the assessee in this case also and allow their plea for remanding the matter to the file of the Ld. Assessing Officer for compliance with the above direction. Having regard to the facts and circumstances of the case, while allowing the prayer of the assessee, we set aside the findings of the Ld. CIT(A) on this aspect and remand the matter to the file of the Ld. Assessing Officer for complying with the above directions, after affording an opportunity to the assessee. Grounds of appeal of the assessee are, therefore, allowed for statistical purposes. 5. Bearing in mind the aforesaid conclusions and the fact that the plea for rejection of sale proceeds from reject coal and iron ore was taken in the alte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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