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2012 (8) TMI 425 - AT - Income TaxDisallowance of deduction claimed u/s 80IA - AO considered the sale price of the wind power sold by the Assessee to the TNEB at the rate of Rs.2.70 per unit through an agreement for calculating the deduction as against Rs.3.50 per unit as taken by assessee - Held that:- The rate at which the State 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 for the purposes of section 80IA(8) and not the price at which power is supplied by the assessee to the Board as decided in Additional Commissioner of Income-tax, Hisar Range, Hisar Versus Jindal Steel & Power Ltd. [2007 (6) TMI 308 - ITAT DELHI] - Thus the value of the power generated and consumed by the assessee will be that value that should have been paid by the assessee if the power was bought from open market. As Tamil Nadu Electricity Board sells power to the assessee in the usual course of its business and the assessee buys the power like any other consumer in the market the question of market price arises & in such a scenario the price collected by the Tamil Nadu Electricity Board is Rs.3.50 per unit and it is obvious that the market price of the power generated by the assessee is Rs.3.50 per unit as opted by assessee - in favour of assessee.
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