TMI Blog2018 (2) TMI 1724X X X X Extracts X X X X X X X X Extracts X X X X ..... ast to a situation where price is fixed between a buyer and a seller negotiation done under legislative mandate. We uphold the impugned order of the Ld. CIT(A) deleting the addition made by the A.O. on account of disallowance of deduction under section 80IA. The appeal of the revenue is accordingly dismissed. - I.T.A. No. 944/Kol/2016 And C.O. No. 38/Kol/2016 (Arising out of ITA No. 944/Kol/2016) - - - Dated:- 16-2-2018 - Shri P.M. Jagtap, AM and Shri S.S.V. Ravi, JM Shri Arindam Bhattacharjee, Addl. CIT appearing on behalf of the Revenue. Shri S. Jhajharia, AR appearing on behalf of the Assessee. ORDER P.M. Jagtap, AM This appeal is preferred by the revenue against the order of Ld. CIT(Appeals) 10, Ko ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction under section 80IA to that extent was wrongly allowed to it in the assessment completed under section 143(3) leading to escapement of income. He, therefore, reopened the assessment by issuing notice under section 148 on 31.03.2010 after recording the reasons. The assessee company raised objection to the initiation of reassessment proceedings by the A.O., but overruling the same, the Assessing Officer proceeded to complete the assessment under section 147/143(3) of the Act vide an order dated 28.12.2010. In the assessment so completed, he disallowed the claim of the assessee for deduction under section 80IA to the extent of ₹ 2,13,47,159/- by relying on the provisions of section 80IA(8) and determined the total income of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this appeal of the revenue relating to disallowance of deduction under section 80IA had come up for consideration before this Tribunal in assessee s own case for A.Y. 2007-08 and vide its order dated 31.08.2012 (supra), the same was decided by the Tribunal vide paragraph no 8 of its order which reads as under: 8. Hence, we are of the view that the market value for the purpose of subsection 8 of section 80IA of the Act is a price arrived at between buyer and seller in the open market where transaction takes place in normal course of business in contrast to a situation where price is fixed between a buyer and a seller negotiation done under legislative mandate. The claim of deduction u/s 80IA of the Act in respect of its captive power un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al is filed by the revenue to keep this issue alive as the appeal filed by it against the judgment of Hon ble Kolkata High Court in A.Y. 2007-08 is pending. We, therefore, respectfully follow the decision of Hon ble Jurisdictional High Court rendered in assessee s own case for A.Y. 2007-08 on a similar issue and uphold the impugned order of the Ld. CIT(A) deleting the addition of ₹ 2,13,47,159/- made by the A.O. on account of disallowance of deduction under section 80IA. The appeal of the revenue is accordingly dismissed. 7. As regards the cross-objection filed by the assessee, it is observed that the issue raised therein challenging the validity of the assessment order passed by the A.O. under section 147/143(3) has become infrust ..... X X X X Extracts X X X X X X X X Extracts X X X X
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