TMI Blog2021 (7) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... t was pre-fixed at ₹ 4.28 per unit. Hence, for the purpose of computing the profit from that eligible unit, the assessee had received sale proceeds from RSEB only @₹ 4.28 per unit. Hence, profit derived from such eligible unit had to be worked out taking into account sale consideration of ₹ 4.28 per unit, which has been rightly granted by the ld. AO to the assessee. It is totally irrelevant as to at what rate the RSEB sells power to ultimate retail consumers. That rate is absolutely not relevant for the purpose of computation of profit derived from eligible unit for the purpose of computing deduction u/s.80IA of the Act in the hands of assessee herein. Hence, we find that the ld. CIT(A) had rightly denied the claim of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing of textile and had ventured into generation of electricity. During the year under consideration, the assessee has claimed deduction u/s.80IA(4)(iv) of the Act totaling to ₹ 29,89,120/-. The assessee had shown net profit from eligible unit of ₹ 14,22,903/- as per the Act. The ld. AO observed that during the year under consideration, the eligible unit has sold 378208 units of electricity to Rajasthan State Government at ₹ 4.28 per unit. Accordingly, receipts from sale of electricity amounting to ₹ 16,18,730/- were credited to P L Account of the assessee. However, while computing deduction u/s.80IA of the Act, the assessee had adopted the rate of sale of electricity @8.40 per unit as against ₹ 4.28 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see had received sale proceeds from RSEB only @₹ 4.28 per unit. Hence, profit derived from such eligible unit had to be worked out taking into account sale consideration of ₹ 4.28 per unit, which has been rightly granted by the ld. AO to the assessee. It is totally irrelevant as to at what rate the RSEB sells power to ultimate retail consumers. That rate is absolutely not relevant for the purpose of computation of profit derived from eligible unit for the purpose of computing deduction u/s.80IA of the Act in the hands of assessee herein. Hence, we find that the ld. CIT(A) had rightly denied the claim of the assessee. We also find that the case laws relied upon by the ld. AR which are also mentioned in the order of the ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
