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2015 (4) TMI 1282 - AT - Income TaxDisallowance u/s. 40A(2)(b) - HELD THAT:- We find that while deleting the disallowance made by A.O, ld. CIT(A) has noted that identical disallowance made by the A.O in earlier years was deleted by CIT(A) and order of ld. CIT(A) was also confirmed by Hon’ble Tribunal [2010 (9) TMI 1204 - ITAT AHMEDABAD] . Before us, Revenue has not brought any material on record to controvert the findings of ld. CIT(A) nor has brought any distinguishing feature of the case for the year under consideration with that of earlier years. We therefore find no reason to interfere with the order of ld. CIT(A) and thus this ground of Revenue is dismissed. Disallowance of claim u/s. 80IA - generation of power and income from steam - HELD THAT:- Various judicial pronouncement referred to by the appellant clearly holds that steam is a form of power and therefore, while considering the profit of the captive power plant, the value of the steam is to be considered. Recent decision in D.C.W. Ltd V/s. A.C.I.T. MUM [2010 (1) TMI 939 - ITAT, MUMBAI] case has held that steam generated in the power plant is nothing but the bye-product and has got the direct connection with the Industrial undertaking and is therefore, to be considered for the purpose of working out the profit of Industrial undertaking wherei as referred to the unreported decision of Madras High Court in the case of C1T V/s, TANFAC Industries Ltd. Therein the Madras High Court has also held that while working out the profit of Captive power plant, the value of the steam generated and used in the manufacturing process in other unit is to be taken into account. The SLP from the said decision has been dismissed by the Hon'ble Apex Court. In view of this decision, the disallowance cannot be made on the alleged and the imaginary intention of the legislature. If there is any ambiguity in law then only other tools of interpretation such as Finance Minister's speech etc. are to be referred to. Thus allow the deduction u/s. 80IA as claimed by the appellant. As such this ground of appeal is allowed.
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