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2022 (1) TMI 588 - AT - Income TaxTP adjustment - Adjustment made by the TPO on the value of electricity supplied by the Captive Power Plant (CPP) to its manufacturing units by benchmarking the same with rate at M/s. Torrent Power - case of the assessee is this that as per the provision of Section 80IA (4) the market value in relation to any goods or services are to be taken as the price that such goods or services would ordinarily fetch in the open market or the Arms Length Price as defined u/s 92F of the Act. Further adopting the market rate for sale by CPP to the processing house was already accepted by the Ld. AO in the earlier assessment year - HELD THAT:- We have considered the judgment passed by the Hon'ble Gujarat High Court in the case of Principal Commissioner of Income-tax - Vadodara-1 vs. Gujarat Alkalies & Chemicals Ltd. [2016 (10) TMI 1111 - GUJARAT HIGH COURT] wherein it has been held that deduction under Section 80IA (4) is allowable to the assessee for generation of power for captive consumption and the steam was to be computed considering rate of power on which the electricity buyer supplied power to its consumer. Thus we find that the judgment particularly passed in the matter of Gujarat Fluorochemicals Ltd. [2018 (8) TMI 857 - ITAT AHMEDABAD] passed by the Coordinate Bench on the similar issue, the judgment passed by the Hon'ble Jurisdictional High Court in the case of CIT-Vadodara-1 vs. Gujarat Alkalies & Chemicals Ltd. (Supra), the Ld. CIT(A) deleted the downward adjustment and subsequent additions made by the TPO/AO holding that in case of Captive Power Plant (CPP) eligible for deduction under Section 80IA the market rate at which the receiving unit is procuring the electricity can be adopted as sale price by the CPP which in our considered opinion is just and proper so as to warrant interference. Thus, the ground of appeal preferred by the Revenue is found to be devoid of any merit and found to be dismissed. Adjustment towards Sale of steam by CPP to Power House - case made out by the assessee is this the claim of the assessee is not the first year of claim made under Section 80IA of the Act rather the assessee is claiming the deduction since A.Y. 2006-07 which was allowed by the First Appellate Authority and in turn confirmed by the Hon'ble Benches - HELD THAT:- Since the issue is identical to that the issue as already discussed hereinabove in assessee's own case for A.Y. 2012-13 & 2013-14 we find no reason to deviate from the stand taken by the Coordinate Bench in upholding the order passed by the Ld. CIT(A) in deleting the order of upward adjustment - The ground of appeal preferred by the Revenue is found to be devoid of any merit and, thus, dismissed.
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