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2017 (12) TMI 1396 - AT - Income TaxReopening of assessment - assessee company failed to furnish profit & loss account, balance sheet and other relevant financial statements of power generation unit and is not eligible for 80-IA deduction - Held that:- The details of employees employed in power plant unit, details of raw material used for production of power and its bye product steam with quantity-wise details, photostat copy of balance sheet enclosed along with detailed letter. The details of month- wise production of power production, register and the same is produced along with covering letter (These details filed, are not disputed by the Department). The Assessing Officer after considering the detailed explanation along with details, passed an assessment order by allowing deduction under section 80IA of the Act. We find that the assessee has discharged his duty by furnishing all the details which are necessary for completion of assessment. In this case, notice issued by the Assessing Officer under section 148 is beyond four years. As per proviso to section 147 of the Act, the Assessing Officer has to allege specifically that there a failure on the part of the assessee to disclose fully and truly all material facts necessary for completing the assessment. We find that there is no such specific finding given by the Assessing Officer in the reasons recorded. Insofar as adoption of unit rate at ₹ 4.50 ps. is concerned, in the reasons recorded, Assessing Officer after considering the submissions made by the assessee accepted the rate adopted by the assessee that the rate on which per unit paid by the assessee to the AP Transco i.e. ₹ 4.5 per unit. Therefore, it is not correct to say that the Assessing Officer has completed assessment without considering the relevant material. The assessee has submitted the relevant material to the Assessing Officer i.e. bills paid by the assessee to the AP Transco and after considering the same, the Assessing Officer allowed, therefore it is not correct to say that there is an escapement of income. We also find that after considering all the details filed by the assessee in paper book at page Nos. 20 to 25, in respect of claim of 80IA as well as adoption of rate per unit after considering the same assessment is completed. - Decided in favour of assessee Deduction u/s 80IA - profit from the eligible business computation - Held that:- As decided in the case of M/s. Eveready Spinning Mills Pvt. Ltd [2011 (11) TMI 368 - ITAT CHENNAI ] for the purpose of 80IA, profit of eligible undertaking has to be determined on the basis of actual lending cost of electricity purchased by the assessee from Tamilnadu Electricity Board and the tribunal has come to a conclusion by following the decision in the case of Addl. CIT v. Jindal Steel & Power Ltd. (2007 (6) TMI 308 - ITAT DELHI) - Decided in favor of the assessee.
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