2020 (12) TMI 85

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..... ght in holding that the assessee was entitled to claim deduction under Section 80IA for captive power consumption relating to the assessment year 2006-07?" 2. The issue involved is as to whether the benefit of such deduction under Section 80IA of the Act to the new Industrial Undertaking is available to the Assessee to the extent of power charges realised by it from the Group Company situated within the same premises where the Assessee manufactures or produces Electricity energy. 3. The learned Tribunal, by its impugned order, allowed the claim of the Assessee following the jurisdictional High Court's decision in the case of CIT v. Thiyagaraja Mills Limited (T.C.A.Nos.68 to 70 of 2010 decided on 7.6.2010). 4. Para 15 and 16 of the ord .....

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..... ofit or gain is derived, falling under sub-sec. covered by sub-sec.(4) of Sec.80IA of the 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 gains 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 80IA(1) can be interpreted. The expression 'derived'; used in the said Sec.80IA(1) in the beginning as well as in the last part of the sub-sec.(4) makes it abundantly clear that such profit or gain could be obtained by one's own consumption of the outcome of any such u .....

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..... venue. We therefore do not find any reason to interfere with the order of the CIT(A) in this regard. In the above circumstances, ground No.3 of the Revenue stands dismissed." 5. The learned Senior Standing Counsel Mr.T.Ravikumar appearing for the Revenue fairly submitted that subsequently the said decision of the Madras High Court was followed by another Bench of Madras High Court in Tamil Nadu Petroproducts Limited v. Assistant Commissioner of Income Tax ((2011) 13 taxmann.com 139 (Madras)). 6. In view of the aforesaid submissions made at the Bar by the learned counsels, the controversy is no longer res integra and the Assessee is clearly entitled to the benefit under Section 80IA of the Act on the Power Charges realised by it from their .....

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