TMI Blog2019 (4) TMI 2038X X X X Extracts X X X X X X X X Extracts X X X X ..... er referred to as the Act ) arising out of the order dated 09.03.2015 passed by the DCIT, Cir-4(1)(2), Ahmedabad for Assessment Year 2012-13. 2. The assessee company engaged in the business of processing manufacturing and trading of clothes filed its return of income on 25.09.2012 declaring total income of Rs. NIL, followed by a revised return filed on 28.09.2013 declaring total income of NIL which was processed u/s. 143(1) of the Act. Under scrutiny notice u/s. 143(2) dated 02.09.2013 followed by a further notice u/s. 143(2) r.w.s 129 along with 142(1) dated 18.11.2014 was issued. During the course of assessment proceeding it was found that the assessee was having captive power plant on which the assessee was claiming deduction u/s. 80IA of the Act. It also appears that out of the total sales of ₹ 20,44,51,202/- made by the captive power plant to Process Division of the assessee ₹ 7,83,66,133/- was in respect of sale of power and at ₹ 12,60,85,069/- was in respect of sale of steam. Ultimately such claim of the assessee was not accepted by the Ld. AO and the profit of ₹ 2,51,27,5478/- was in respect of sale of steam to process was disallowed which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 155172583 146106760 2 STREAM TO KGS 117695051 KGS 11433615 KGS 109171082 107678291 110573541 106190960 PROCESS 3 STEAM POWER PLANT KGS 49967887 KGS 44890285 KGS 44997977 46936360 44599042 39915800 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EXPRENSES INCURRED TOTAL RS/ KC TOTAL RS/ KC TOTAL *S/KG 1 LIGNITE COAL RS. 117202086 RS. 111244176 RS. 125388619 88141936 73476124 58649912 2 MAINTENANCE EXPENSES RS. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C COST PER KG OF STEAM RS. RS. RS. 0.73 0.62 0.51 D STEAM USED IN PROCESS KGS 117695051 KGS 114333615 KGS 109171082 107678291 110573541 106190960 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Section 80IA(4) of the Act. When on one hand AO herself is accepting the steam is eligible for deduction and on the other hand she is disallowing the deduction, it itself is contradictory, when once the AO is of the opinion that deduction is available on steam then no disallowance should have been made only on assumptions basis. The assessee has submitted several decisions in support of its contention and same are stated therein, the steam was transferred at a higher price. Further assessee has submitted engineering certificate at Page No. 10 of Paper Book in which also the cost of generation of steam can be considered in the range of ₹ 1.16/- to 1.25 per kg of steam. Further the saving in cost due to Captive production also cannot be ruled out which has been elaborated discussed by the Ld. CIT(A). 8. We therefore, relying on various decision in support of the claim made by the assessee and acceptance by the AO that steam is a form of power and eligible for deduction and for the basis of deduction relying on the engineers certificate as well different case laws held. CIT(A) has rightly deleted the addition and profit and margin kept by the assessee in Captive consumpt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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