Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (11) TMI 368 - AT - Income TaxDeduction u/s 80IA in respect of electricity generated by the assessee from its windmills and captively used by it for its yarn manufacturing business - Determination of market price of electricity captively consumed – Held that:- Sub-section (8) of Section 80-IA provides that where an assessee, which is eligible for 80-IA benefits, transferred its goods or service to its business other than the eligible business, the consideration if any recorded for such transfer in the accounts of the eligible business, should correspond to the market value of such goods or services. Price at which assessee sold its power to the Electricity Board cannot be equated with market rate since power tariff between the assessee and the Board is not done in a competitive environment. Thus, price at which the Electricity Board supplies power to its consumers is to be considered to be the market value for transfer of power by the assessee's electricity generating undertaking for captive consumption. See Addl. CIT v. Jindal Steel & Power Ltd. (2006 - TMI - 65524 - ITAT Delhi-H) - Decided in favor of the assessee.
|