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2011 (11) TMI 683 - AT - Income TaxDeduction under Section 80-IA in respect of electricity generated by the assessee from its windmills and captively used by it for its yarn manufacturing business - Held that:- Had the assessee not been saddled with the restrictions of supplying surplus power to the State Electricity Board, it would have supplied the power to ultimate customers at a price not less than ₹ 3.50 per unit, being the rate charged by the Board from its industrial consumers. Thus, under the given circumstances, it would be appropriate to hold that the consideration recorded by the assessee for transfer of power for captive consumption, which is at the rate of ₹ 3.50 per unit, corresponds to the market value of such power. Though the ld. CIT(Appeals) had upheld order of the A.O. relying on the decision of Delhi Bench of this Tribunal in the case of Addl. CIT v. Jindal Steel And Power Ltd. (2007 (6) TMI 308 - ITAT DELHI ), we are of the opinion that this decision better supports the case of the assessee. We are, therefore, of the opinion that assessee has to succeed in its appeal and profits of eligible undertaking has to be determined on the basis of annual landing cost of electricity purchased by the assessee from TNEB. - Appeal filed by the assessee stands allowed.
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