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2018 (1) TMI 785 - AT - Income TaxApplicability of section 80A(6) - benefit under Section 80-IA entitlement - Held that:- As noted the authorities below have not examined the matter after taking into consideration the provisions of section 80A(6) of the Act wherein the market value of the electricity sold and purchased are to be determined separately and has been made subject to statutory and regulatory restrictions. Further, the earlier decisions of the Coordinate Benches are distinguishable as the provisions of section 80A(6) were not considered in those decisions. Thus in the interest of justice and fair play, following our decision in case of Chambal Fertilizers (2016 (10) TMI 1115 - ITAT JAIPUR) and given the provisions of section 80A(6) which overrides section 80IA(8) and are clearly applicable in the instant case and have not been considered by the authorities below, we deem it appropriate to set aside the matter back to the file of the Assessing officer to examine the same afresh taking into consideration the above discussions. TDS liability on education cess and higher education cess - Held that:- Hon’ble Supreme Court in case of SRD Nutrients Private limited (2017 (11) TMI 655 - SUPREME COURT OF INDIA) where education cess and higher education cess have been held to partake the character of excise duty, the legal proposition so laid down by the Hon’ble Supreme court will apply with equal force in the context of income tax, and following our decision in case of Chambal Fertilizers (supra) wherein we have held that across all tax legislation – direct taxes as well as indirect taxes on goods and services, the nature and character of education cess and higher education cess is clearly tax and nothing else, we are of the considered view that the assessee’s claim of deduction on account of education cess (EC) & secondary and higher education cess (SHEC) on income tax & dividend distribution tax amounting to ₹ 1,42,79,859/-, as eligible revenue expense u/s 37 of the Act is not permissible in view of the provisions of section 40(a)(ii) of the Act. MAT computation - exclusion of profit on sale of investments and profit on sale of fixed assets while computing book profit u/s 115JB - Held that:- This issue has since been covered against the assessee by the decision of Coordinate Bench [2015 (3) TMI 759 - ITAT JAIPUR] in the assessee’s own case for AY 2008-09. Respectfully following the same, we hereby confirm the order of the ld CIT(A) and dismiss the ground of appeal taken by the assessee. Disallowance of electricity duty exemption - capital receipt or revenue receipt - not including the same while determining the books profits u/s 115JB - Held that:- The object and purpose test has been held to be determinative of the character of receipt in the hands of the assessee company and our own decision in case of Hindustan Zinc (2018 (1) TMI 758 - ITAT JAIPUR) wherein we have examined the Rajasthan Investment Promotion policy 2003 in context of electricity duty exemption, we affirm the action of the ld CIT(A) and hold the receipt on account of electricity duty exemption as capital receipt. Hence, the same cannot be brought to tax in the hands of assessee company under the normal computational provisions as well as while determining the books profits under section 115JB of the Act. - Decided against revenue
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