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2017 (9) TMI 189 - HC - Income TaxDisallowance under section 14A - Held that:- Assessee possesses own funds much more than the tax free investments, the disallowance u/s 14A read with Rule 8D cannot be made.The assessee had made investments earning tax free income and on the he also had borrowed funds paying interest of ₹ 75,02,592/-.AO is of the view to disallowed this interest with the aid of section 14A of the Act.Since it cannot be assumed that investments are made from borrowed funds rather than from assessee's own funds therefore no disallowance could be made. Therefore, no question of law arises.= Revenue's appeal is dismissed. Claim of deduction under section 80IA(4) - entitled to claim market value of the eligible unit - rate for computation of such benefit for purchase of electricity - Held that:- Claim allowed as relying on assessee's own case for preceeding AYs held that it is price at which assessee transferred electricity generated by it eligible business to its other business which would be considered for purpose of computation of profits and gains of eligible business in terms of section 80IA( 8) and not lesser price at which surplus electricity was sold to Electricity Board. Profit and gain from captive consumption of electricity supplied only to assessee by power plant of assessee will qualify for deduction under section 80IA.- Decided in favour of assessee. Treatment to assessee's income from trading of carbon credits - Held that:- Receipts of carbon credit are in nature of revenue receipts. See CIT v. Subhash Kabini Power Corporation Ltd. reported in (2016 (5) TMI 793 - KARNATAKA HIGH COURT) and Commissioner of Incometax v. My Home Power Limited [2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT ] - Tax appeal is dismissed.
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