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2024 (1) TMI 1252 - HC - Income TaxDeduction u/s 80IA(8) - computation of the market value of electricity supplied by the captive power plants of the assessee to its industrial units - Scope of expression “market value” in relation to any goods - profits of eligible business of captive power generation plants - HELD THAT:- As decided in M/S JINDAL STEEL & POWER LIMITED THROUGH ITS MANAGING DIRECTOR [2023 (12) TMI 417 - SUPREME COURT] the rate at which power was supplied to a supplier could not be the market rate of electricity purchased by a consumer in the open market. On the contrary, the rate at which the State Electricity Board supplied power to the industrial consumers has to be taken as the market value for computing deduction under Section 80 IA of the Act. We hold that the Tribunal had rightly computed the market value of electricity supplied by the captive power plants of the assessee to its industrial units after comparing it with the rate of power available in the open market i.e., the price charged by the State Electricity Board while supplying electricity to the industrial consumers. Therefore, the High Court was fully justified in deciding the appeal against the revenue. Deduct the cost of reject coal and iron ore fine dust for determining the disallowance to be made u/s 80IB - Bearing in mind the aforesaid conclusions and the fact that the plea for rejection of sale proceeds from reject coal and iron ore was taken in the alternative, with the assessee claiming that the same if not accepted should be adjusted against the purchase cost and consequently leading to the remand of proceedings to the Assessing Officer, we find no justification to entertain the instant appeal.
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