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2012 (8) TMI 190 - AT - Income TaxRe-assessment - Assessee had claimed deduction under Section 80-IA of the Act not only with respect to electricity produced by it, but also for lignite mined by it – Held that:- AO considered income-tax reimbursement not as income derived from power generation activity. All these would amply show that Assessing Officer had applied his mind at the time of original assessment proceedings. Re-assessment having been started after the lapse of four years period from the end of the relevant assessment year - Re-assessment was initiated only based on change of opinion and there was no other tangible record and information available with the Assessing Officer for initiating such reassessment proceedings - Revenue’s appeal for assessment year 2002-03 is dismissed Disallowance under Section 14A of the Act - exempt income earned was from tax free bonds issued by Electricity Boards and such bonds were issued pursuant to Government order. Interest was automatically credited to the bank account and there was no expenses for such income earned – Held that:- Even prior to that year, A.O. was duty bound to compute disallowance under Section 14A by applying a reasonable method – matter remanded to AO Addition made for reversal of sale - as per the assessee, it had to be either allowed as bad debts since amounts were irrecoverable or as business loss - Held that:- assessee having already accounted and offered to tax the amounts as per the tariff in the power purchase agreement, it could claim as a bad debt the excess billings which it came to know, only on determination of tariff by CERC.
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