TMI Blog2018 (6) TMI 1503X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is eligible for claim of deduction u/s 80IA. - Decided in favour of assessee. - ITA No. 465, 466, 467 & 468/Hyd/2018 - - - Dated:- 27-6-2018 - Shri V. Durga Rao, Judicial Member And Shri S. Rifaur Rahman, Accountant Member Revenue by : Shri Phani Raju Assessee by : Shri Tambidurai ORDER PER V. DURGA RAO, J.M.: These appeals filed by the revenue are directed against the orders of the learned Commissioner of Income-tax (A), Tirupati, dated for AY 2011-12 to 2015-16. As identical issue is involved in all these appeals, the same were clubbed and heard together and, therefore, a common order is passed for the sake of convenience. 2. Briefly the facts as taken from AY 2011-12 being ITA No. 465/Hyd/2018 are t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se are the by products arising out of manufacturing process. This issue is fully covered by the decision of the Hon'ble ITAT (A) Bench, (Hyderabad in ITA. No.666/Hyd/2015) in the assessee's own case for AY 2010-11 where in Hon'ble ITAT observed in para 7.3 as under. After considering the aforecited decisions of Hon'ble Supreme Court and Hon'ble Delhi High Court and also the order of the Ld. CIT(A), we also come to the conclusion that the profits and gains derived from such business considered to include the sale of sludge, which is the product of the business undertaken by the assessee i.e., manufacture of power and the sludge is generated out of such activity and is held to be directly attributable to the busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed. He also strongly placed reliance on the order of the CIT(A). 6. We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. The only issue for consideration before us is that whether the sale receipts of sludge/waste oil is eligible for deduction u/s 80IA of the Act. The AO disallowed the assessee s claim on the ground that sale receipts of sludge/waste oil is only incidental not derived from the business of the assessee and, therefore, not eligible for deduction u/s 80IA of the Act. The case of the assessee is that sludge/waste oil is bye-products which are used in the power generation, therefore, the same is part and parcel of business of the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owever, the assessee in support of his contention relied on the decision of Hon'ble Supreme Court in the case of Liberty India vs. CIT (2009) 317 ITR 218 to establish the distinction between the provisions of section 80HH/80I, 80IB and 80IA. In this connection, it is relevant to extract the relevant provisions of section 80IA and section 80HH as under : Section 80IA: Where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any business referred to in sub-section (4), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred percent of the profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofits and gains derived from any business referred to in sub-section . 7.2. After considering all the above decisions, we are of the opinion that the Ld. CIT(A)'s finding that the used lubricant oil, constitute a by-product of the business of the assessee and sale of such waste oil constituted business receipts to the assessee is correct. Therefore, the assessee is entitled for deduction under section 80IA. The Ld. CIT(A) also categorically distinguished the language used in sections 80HH/80I, 80IB. 7.3. After considering the aforecited decisions of Hon'ble Supreme Court and Hon'ble Delhi High Court and also the order of the Ld. CIT(A), we also come to the conclusion that the profits and gains derived from such busin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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