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2019 (1) TMI 526 - AT - Income TaxDisallowance of claim for deduction under section 80IA - Held that:- From the above specific sub-clause (a) to clause (iv) of section 80IA, it is clear that the intention of Legislation for substituting clause (iv) to section 80IA(4) to the Undertaking is only to extent the benefit of the provisions of section 80IA to such undertaking, which is neither a company nor a consortium of companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act as required under clause (i) to section 80IA(4) only to encourage electric power generation and its distribution. Since the authorities below have not disputed any other parameters of eligibility criteria, we are of the considered opinion that the assessee is eligible to claim deduction under section 80IA(4)(iv) of the Act. The orders of authorities below and direct the Assessing Officer to allow the deduction claimed by the assessee. Thus, the ground raised by the assessee is allowed. Disallowance of infrastructure development charges and erection & commission charges as well as transmission and wheeling charges under section 40(a)(ia) - Held that:- As per the remand report dated 08.09.2016, the AO has clarified that the impugned payments were prior to commissioning of the windmill and the amounts have been capitalized. Further, in the remand report, AO has stated that a perusal of the Profit and Loss statement shows that the impugned payment has not been claimed as revenue expenditure by assessee, but capitalized as evident from the depreciation schedule. The provisions of section 40(a)(ia) is applicable only when the assessee has claimed an expenditure and no disallowance can be made under section 40(a)(ia) if the payments were not claimed as an expenditure. Both the disallowances made by the AO u/s 40(a)(ia) and confirmed by the ld. CIT(A) stand deleted. - decided in favour of assessee.
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