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2019 (7) TMI 1924 - HC - Income TaxDeduction u/s 80-I-A - income derived by it from unit transfer/self-consumption of power cogenerated from the entitled undertaking and to the extent and principles for determination thereof - HELD THAT:- As relying on ALEMBIC LIMITED [2016 (7) TMI 1239 - GUJARAT HIGH COURT] there is no difficulty in holding that captive consumption of the power generated by the assessee from its own power plant would enable the respondent-assessee to derive profits and gains by working out the cost of such consumption of power inasmuch as the assessee is able to save to that extent which would certainly be covered by section 80-LA(1). When such will be the outcome out of own consumption of the power generated and gained by the assessee by setting up its own power plant, we do not find any lack of merit in the claim of the respondent-assessee when it claimed by relying upon section 80-IA(1) of the Income-tax Act by way of deduction of the value of such units of power consumed by its own plant by way of profits and gains for the relevant assessment years. Against the aforesaid judgment of Madras High Court, SLP was filed before the Hon’ble Supreme Court, being SLP which was dismissed. In that view of the matter, learned Tribunal while considering the matter has not considered the issue in its true perspective. Therefore, only for adjudication on the factual matrix in terms of the aforesaid discussion, the matter is remitted back to the learned Tribunal for fresh adjudication.
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