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2023 (11) TMI 120 - AT - Income TaxValue of electricity supplied for the purpose ALP and claim of deduction u/s. 80IA - Determination of value of electricity supplied by the Captive Power Plant for the purpose of deduction - HELD THAT:- Value of electricity supplied by the Captive Power Plant for the purpose of deduction u/s. 80IA is to be computed on the market value of power supply or the rate of power charged by State electricity Board, the same is no more res integra by case of PCIT-Vs-Gujarat Alkalies & Chemicals Ltd [2016 (10) TMI 1111 - GUJARAT HIGH COURT] AND Meghmani Finechem Ltd.-Vs-National E Assessment Centre [2023 (6) TMI 337 - ITAT AHMEDABAD] as held it is a well settled principle that where an assessee, being a captive power plant provided electricity to its associated enterprises and claimed deduction u/s. 80-IA, then for the purpose of deduction, market value of power, supplied by the assessee to its associated enterprises should be computed considering rate of power charged by State Electricity Board for supply of electricity to industrial consumers and and thus, assessee was justified in adopting ALP of electricity supply to its AES at rate charged by State Electricity Board and Revenue was not justified in excluding certain heads of charges out of it. The assessee has rightly computed the sale of electricity generated through its CPP by adopting Rs. 5.50 per unit being the supply of electricity rate by Torrent Power Ltd. for the purpose ALP and claim of deduction u/s. 80IA of the Act. The same does not require any interference. Decided against revenue. ITAT discretion to a new ground - Nature of receipt - TUFF Subsidy - issue not emanate from the assessment records - Whether capital receipt and not taxable? - HELD THAT:- This issue of TUFF subsidy received by the assessee as capital receipt is not a subject matter of discussions and disallowance by the Assessing Officer in the assessment order. This TUFF Subsidy is not an issue arising from the record of the assessment proceedings. As decided in the case of National Thermal Power Corporation Ltd.[1996 (12) TMI 7 - SUPREME COURT] wherein it was held that undoubtedly, the ITAT has the discretion to allow or not to allow a new ground to be raised but where the ITAT is only required to consider the question of law arising from the facts “which are on record in the assessment proceedings”, in order to correctly assess the tax liability of an assessee. In our considered view this issue of TUFF Subsidy does not arise from the “record of the assessment proceedings” of the Assessing Officer. The Ld. Counsel also not drawn our attention to the claim in Return of Income and other records. When this issue does not emanate from the assessment records, we do not have power to adjudicate the same. Decided against assessee.
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