TMI Blog2010 (11) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... section 80-IA in order to avail the benefits provided therein - Therefore, the contention based on the interpretation of the expression 'derived from' can have no application to the case where the provisions of section 80-IA get attracted - Decided in favour of assessee. - 896 TO 902 OF 2009 - - - Dated:- 2-11-2010 - F.M. IBRAHIM KALIFULLA, N. KIRUBAKARAN, JJ. R. Vijayaragavan and Subbaraya Aiyar Padmanabhan for the Appellant. K. Subramanian for the Respondent. JUDGMENT F.M. Ibrahim Kalifulla, J. 1. The following substantial questions of law were raised in Tax Case (Appeal) Nos. 896, 899 and 900 of 2009 : "1. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking for generation of electricity ignoring the fact that the lower authorities have not controverted that the wind electricity generation by separate undertaking is entitled to relief under section 80-IA only in respect of electricity sold to TNEB? 3. Whether the Tribunal was right in holding that deduction under section 80-IA is not allowable to the assessee as there is no positive income as recorded by the Assessing Officer and ignoring the findings of CIT(A)? 4. Whether on the facts and in the circumstances of the case, the Tribunal ought to have adverted to the findings of the lower authorities as well as decision of the Co-ordinate Bench regarding grant of relief in respect of electricity generated and captively consumed? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction covered by sub-section (4) of section 80-IA of the Income-tax Act, such profit or gain derived by the assessee can be deducted in its entirety for a period of 10 years starting from the date of functioning of the set up. The contention that profit or gain can be claimed by the assessee only if such profit or gain is derived by the sale of its product or power generated to an outsider cannot be the manner in which the provisions contained in section 80-IA(1) can be interpreted. The expression 'derived' used in the said section 80-IA(1) in the beginning as well as in the last part of sub-section (4) makes it abundantly clear that such profit or gain could be obtained by one's own consumption of the outcome of any such undertaking or bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view that the value of steam used for captive consumption by the assessee was entitled to be deducted under section 80-IA of the Act. On behalf of the Revenue, reliance was placed upon the circular of CBDT dated 3-10-2001 and contended that the assessee was not entitled for the deductions. After making a detailed reference to the contents of the said circular, the Division Bench has stated as under in para 13 of the judgment : "13. A perusal of the abovesaid circular would clearly show that it is also in favour of the assessee. The said circular is very specific that in a case of captive power unit the provision of law is also the same as in the case of the undertaking which generates and distributes the power to any other concern. Furth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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