Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 1400 - AT - Income TaxDisallowance of deduction claimed u/s 80-IA - whether the compensation received by the assessee is business income and therefore eligible for the deduction under section 80IA ? - Held that:- It is undisputed fact that the compensation was received by the assessee from SEL as the machines failed to generate the guaranteed electricity units. It is also admitted fact that the assessee is into the business of wind power generation business. Thus it can be inferred that the impugned compensation has direct nexus with the business operations of the assessee and accordingly eligible for deduction under section 80IA of the Act. We also find that in the identical facts & circumstances the Hon’ble ITAT decided the issue in favor of assessee by allowing the compensation on account of power generation loss is entitled for deduction u/s. 80-IA of the Act in the case of Lahoti Overseas Ltd. Vs Dy. Commissioner of Income Tax [2016 (4) TMI 591 - ITAT MUMBAI] DR before us has alleged that the impugned compensation is in the nature of incentive which in our considered view is not true. It is because of the fact that it was given due to non-generation of units as guaranteed by the SEL. Thus by no stretch of imagination the compensation can be equated with the incentive. Thus we deleted the addition - Decided in favour of assessee.
|