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2020 (3) TMI 231 - HC - Income TaxTDS u/s 195 - Disallowance u/s.40(a)(ia) - non deduction of tax on commission payable to foreign agents - HELD THAT:- As decided in own case issue decided in favour of assessee [2019 (9) TMI 1332 - GUJARAT HIGH COURT ] Disallowance under Section 36(1)(iii) - assessee had capitalized the interest cost on the borrowings used to acquire the capital assets - HELD THAT:- The concurrent finding of fact recorded by the two authorities is, that the assessee had furnished the working of interest capitalized to the tune of ₹ 32,64.147/- after taking into consideration the capital expenditure incurred for the capital assets and the quantum of work in progress from time to time. The Tribunal rightly observed that the presumption drawn by the Assessing Officer that the total term loan received was towards the CWIP could not be said to be based on any cogent material. Question, as proposed by the Revenue cannot be termed as a substantial question of law. Deduction u/s 80IA(4) - operation of the Captive Power Plant - as per revenue production of “steam” is only a byproduct, which is used by the assessee for its manufacturing activity - HELD THAT:- This Court took notice of the fact that the assessee had installed turbine for power generation which relied on the excess steam production capacity of the plant. This Court ultimately took the view that the installation of turbine for power generation could be said to setting up of a new industrial unit and therefore, the assessee would not be entitled for deduction of sum under Section 80IA of the Act. Facts in the case of Commissioner of Income-tax Vs. Atul Ltd. [2016 (8) TMI 413 - GUJARAT HIGH COURT] are quite different and the ratio, as propounded in the same, will have no applicability to the case on hand, more particularly, the question No.3 with which we are dealing with. It is difficult for us to take the view as suggested by the learned standing counsel appearing for the Revenue that “steam” would not amount to power. The word “Power” used in Section 80IA(4) has not been defined under the Income Tax Act. The word “Power” should be understood in common parlance as “Energy”. “Energy” can be in any form being mechanical, electricity, wind or thermal. In such circumstances, the “steam” produced by the assessee can be termed as power and would qualify for the benefits available under Section 80IA(4) of the Act. Disallowance u/s 14A - HELD THAT:- CIT(A) allowed the appeal following the deduction given by this Court in the case of Corrtech Energy Pvt Ltd. [2014 (3) TMI 856 - GUJARAT HIGH COURT] . The deduction as allowed in Corrtech Energy Pvt Ltd. (Supra) is that no disallowance can be made if no exemption from the income has been claimed. - Decided against revenue.
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