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2021 (7) TMI 63 - AT - Income TaxDisallowance u/s.80IA in respect of electricity generated in power plant in Rajasthan - claim was denied by the ld. AO on the ground that the claim does not match with the amount actually realized by the assessee by way of sale proceeds from Rajasthan State Electricity Board - HELD THAT:- Though the deduction u/s.80IA of the Act is granted for generation of electricity i.e. 378208 units, for the purpose of computation of claim of deduction u/s.80IA of the Act, what is relevant is the number of units that were supplied by the assessee to the grid of RSEB. Admittedly, the assessee had entered into an agreement with RSEB wherein the price per unit was pre-fixed at ₹ 4.28 per unit. Hence, for the purpose of computing the profit from that eligible unit, the assessee had received sale proceeds from RSEB only @₹ 4.28 per unit. Hence, profit derived from such eligible unit had to be worked out taking into account sale consideration of ₹ 4.28 per unit, which has been rightly granted by the ld. AO to the assessee. It is totally irrelevant as to at what rate the RSEB sells power to ultimate retail consumers. That rate is absolutely not relevant for the purpose of computation of profit derived from eligible unit for the purpose of computing deduction u/s.80IA of the Act in the hands of assessee herein. Hence, we find that the ld. CIT(A) had rightly denied the claim of the assessee. We also find that the case laws relied upon by the ld. AR which are also mentioned in the order of the ld. CIT(A) are rendered in the context of captive power units and since, assessee is not a captive power unit, those case laws are not applicable to the assessee herein and distinguishable on facts. Accordingly, the grounds raised by the assessee are dismissed.
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