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TMI Blog2014 (2) TMI 1351X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal to decide the issue in reference on merits. The counsel submits that the issue in appeal before the High Court was whether the assessee is entitled for deduction under section 80-IA on the generation of power and utilized for captive consumption. Now this issue has been settled in favour of the assessee by the jurisdictional High Court in the case of Tamil Nadu Petro Products Vs. ACIT (338 ITR 643) . He further submits that in the case of CIT Vs. Tanfac Industries (319 ITR 8) (st), the Hon'ble Supreme Court dismissed SLP filed by the Department on similar issue. 3. We have perused the order of the Hon'ble High Court dated 12.4.2011 in Tax Case (Appeal) No.1449 of 2010 in the case of the assessee wherein the Hon'ble Court restored ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set up wind electricity generation units, which have commenced generation of electricity and the electricity generated is fed into the TNEB grid. Further the appellant submitted that as per sub-section (2) of section 80-IA the deduction specified in sub-section (1) at the option of the assessee be claimed for any ten consecutive assessment years out of fifteen years beginning from the year in which the undertaking or enterprises begins to generate power of commences transmission or distribution of power. The appellant stated that the company has exercised its option of claiming deduction u/s.80IA for the first time in the F.Y.2001-02 and the market value of the electricity generated is the income on which the deduction of section 80IA is cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e abovesaid judgment which reads thus : "8. The contention that only whatever power generated from the sale to an outsider or the Electricity Board, and the profit or gain derived by such sale alone can be taken as profits or gains derived by the assessee as mentioned in section 80-IA(1) of the Income-tax Act, has been rejected by the Tribunal in the order impugned. In our considered view, the Tribunal was well justified in having rejected such a stand of the appellant. Having referred to section 80-IA(1) of the Income-tax Act, we are also convinced that what is all to be satisfied in order to be eligible for the deduction as provided under sub-section (1) of section 80-IA, the assessee should have set up an undertaking or an enterprise a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould enable the respondent/assessee to derive profits and gains by working out the cost of such consumption of power inasmuch as the assessee is able to save to that extent which would certainly be covered by section 80-IA(1). When such will be the outcome out of own consumption of the power generated and gained by the assessee by setting up its own power plant, we do not find any lack of merit in the claim of the respondent/assessee when it claimed by relying upon section 80-IA(1) of the Income-tax Act by way of deduction of the value of such units of power consumed by its own plant by way of profits and gains for the relevant assessment years." Mr. K. Subramanian, learned standing counsel for the respondent would however contend that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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