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2022 (5) TMI 1012 - AT - Income TaxDeduction u/s.80-IA on its income derived out of its captive power plant denied - as per assessee independent new industrial undertaking at substantial capital outlay, producing power for consumption in its industrial undertaking entitled for deduction u/s 10B is setup and is approved under various sanctions and permissions - Assessee submitted that the issue relating to the entitlement of deduction u/s 80IA(4) in relation to the subsequent years may be kept open and for the Assessment Year under consideration, since the assessee otherwise is entitled to exemption u/s 10B of the Act, therefore, the issue relating to entitlement of the assessee of deduction u/s 80IA(4) will not have any tax implication for this relevant year HELD THAT:- Admission/comment of the assessee should not have any bearing regarding the issue of eligibility of the assessee of claiming deduction u/s 80IA(4) in respect of the said power captive unit in relation to subsequent years, wherein the assessee may be affected by some tax implications. In view of above submissions, for the assessment year under consideration without adjudicating upon the issue of the eligibility of the assessee for claiming deduction u/s 80IA(4) on the power captive unit, the appeal is disposed off with the direction to the Assessing Officer to compute the eligible profits of the assessee by taking the entire unit as single unit including power captive unit and determine eligible profits of the assessee for exemption u/s 10B - At the sake of repetition, it is again reiterated that our directions given above will not have any bearing on the issue of entitlement of the assessee for deduction u/s 80IA(4) in any of the previous or subsequent years. In view of this, the appeal of the assessee is treated as partly allowed.
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