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2022 (5) TMI 107 - AT - Income TaxReopening of assessment u/s 147 - entitlement of the assessee company for deduction u/s.80IA(4)(iv) qua the power generated by its Captive Power Plant (CPP) that was transferred/sold to MSEDCL, in lieu whereof the latter would give corresponding credit to the assessee company by reducing the amount from the electricity bill payable by the company - HELD THAT:- On a perusal of the order of the CIT(Appeals), we find that it is a matter of fact borne from record that the assessee company had disclosed fully and truly all the material facts that were necessary for framing of its assessment for the year under consideration. Nothing is either discernible from records nor brought to our notice by DR which would show that the facts disclosed by the assessee were either not full or true. In our considered view, now when the assessee had fully and truly disclosed all the material facts in its return of income on the basis of which assessment u/s. 143(3) was earlier framed in its case, therefore, as observed by the Ld. CIT(Appeals), and rightly so, notice u/s.148 issued beyond a period of four years from the end of the relevant assessment year, i.e., A.Y.2010-11 was clearly barred by limitation and without jurisdiction. We, thus, in terms of our aforesaid observations concur with the view taken by the CIT(Appeals). Thus, the Ground of appeal No.1 raised by the Revenue is dismissed. Disallowance claim for deduction u/s.80IA for the reason, that it had by trading surplus power generated to MSEDCL had contravened the provisions of section 80IA - CIT-A allowed the claim - On a perusal of the order of the CIT(Appeals), we find that he had categorically observed that the assessee company has established a separate industrial undertaking, viz. power plant for generation and distribution of electricity which was supplied to its own steel plant, as well as transferred/sold to MSEDCL. It was observed by him that the aforesaid facts had been examined year after year of the order of the Assessing Officer, Addl. CIT, CIT(Appeals) and Hon’ble ITAT, which thereafter had been accepted by the Department as it had chosen not to prefer any further appeal for the assessment year(s) 2006-07, 2007-08 , 2008-09 and 2009-10. Also, the CIT(Appeals) had invalidated the view taken by the Assessing Officer that since the assessee company was doing trade by supplying and banking power to MSEDCL, therefore, it had violated Section 80IA(4)(iv) of the Act, for the reason, that the power plant was an integral part of the steel plant and was not a separate industrial unit. It was observed by the CIT(Appeals) that as the aforesaid view of the Assessing Officer was glaringly contrary to the facts that were available on record and had been accepted by him in the original assessment order passed u/s.143(3), dated 14.03.2014, therefore, the impugned reassessment proceedings were embarked upon a mere “change of opinion”. We have given thoughtful consideration and are of the considered view that no infirmity arises from the aforesaid order of the CIT(Appeals) qua the issue in hand, i.e., entitlement of the assessee for deduction u/s.80IA of the Act on the surplus power transferred to MSEDCL - Decided against revenue.
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