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2023 (10) TMI 654 - AT - Income TaxTP adjustment - specified domestic transaction of inter-unit transfer of power from the eligible undertaking u/s. 80-IA to other manufacturing undertaking of the assessee which are non-eligible units - price charged by the eligible unit has been compared with the prices charged by Gujarat Electricity Board (GEB) - whether the market value in the price charged by the eligible unit for the sale of electricity to another unit can be benchmarked with the price on which GEB is supplying to the customers? - case of the department is that since assessee is generating electricity and supplying it to the manufacturing unit, therefore, functionally it is similar to entities which are generating electricity and not which are into distribution of electricity. HELD THAT:- Once the market value of such price on which electricity is sold to another unit of the assessee, the same can be compared with the electricity distribution entities for supplying to the customers in the open market. Accordingly, there is no infirmity in the contention of the assessee that per unit electricity sold to the non-eligible unit at Rs. 6.90 per unit is the market value. DRP has taken M/s. Torrent Power Ltd. (TPL) which is the electricity generation entity supplying electricity to GEB - The price fixed for purchasing the electricity by GEB from M/s. Torrent Power Ltd. (TPL) cannot be compared with the prices on which eligible unit of the assessee is selling it to the other. Thus, once only comparable as chosen by the ld. DRP fails, then same loses the comparability for determining the ALP. In view of aforesaid discussion, we hold that the price on which eligible unit is selling the power, i.e., at Rs. 6.90 per unit which is the price available in the open market and also the same manufacturing unit is purchasing it from GEB at the same price, then it can be said to be the market value of the price. Accordingly, addition / disallowance of deduction made by the ld. CIT (A) is deleted and the ground Nos. 1-4 raised by the assessee are allowed. Taxing income under the head "income from business and profession" thereby levying additional tax in the computation sheet when there is no such additions in the assessment order - Before us the ld. Counsel has submitted a chart pointing out the discrepancy in the computation sheet of the ld. AO. Accordingly, we direct the ld. AO to verify the facts and if there is such error, same should be rectified and relief should be given. Accordingly, this ground is allowed for statistical purposes. Levy of interest u/s. 234B - Counsel submitted that there is no short fall and in fact assessee has paid extra tax more than assessed income. On this issue also we direct the AO to verify the payment of tax and to grant consequential relief in the computation of interest u/s. 234B. Accordingly, appeal of the assessee is partly allowed for statistical purposes.
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