TMI Blog2019 (7) TMI 1924X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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. Against the aforesaid judgment of Madras High Court, SLP was filed before the Hon ble Supreme Court, being SLP which was dismissed. In that view of the matter, learned Tribunal while considering the matter has not considered the issue in its true perspective. Therefore, only for adjudication on the factual matrix in terms of the aforesai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... press question no.(iii). In support of his submission on question nos.(i) and (ii), he has strongly relied upon the decision of Gujarat High Court in the case of Commissioner of Income Tax-I -v- Alembic Limited, reported in Manu/GJ/1414/ 2016 (decided on 20.07.2016), wherein the Gujarat High Court at paragraph-10 has observed as follows: 10. The learned counsel for the assessee has supported the order of the Tribunal and contended that the Tribunal has not committed any error in allowing the claim of the assessee. So far as the raising additional ground before the appellate-authority is concerned, he has relied on the decisions of this court in the case of Commissioner of Income-tax v. Mitesh Impex reported in 270 CTR 66 and New India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee has further relied on the decision in the case of Commissioner of Income-tax, Raipur v. Godawari Power Ispat Ltd., reported in (2014) 42 taxmann.com 551 (Chhattisgarh) where the court has held thus: Where the assessee had established a captive power plant in State of Chhattisgarh to supply electricity to its steel division, for purpose of section 80-IA deduction market value of power supplied by assessee to steel division should be computed considering rate of power charged by Chhattisgarh State Electricity Board for supply of electricity to industrial consumers. 10.3 The learned counsel for the assessee has submitted that the assessee is eligible for deduction under section 80-IA of the Act for captive pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d therein. Therefore, the contention based on the interpretation of the expression `derived from could have no application to the case where the provisions of section 80-IA got attracted. Against the aforesaid judgment of Gujarat High Court, SLP has been filed before the Hon ble Supreme Court bearing SLP No.8070 of 2017, which is pending adjudication. Therefore, we make it clear that while answering the question of law in favour of the assessee, the same will be subject to the result of the SLP which is pending before the Hon ble Supreme Court. Further, learned counsel for the appellant has also relied upon the decision of Madras High Court in the case of Tamilnadu Petro Products Ltd. -v- Assistant Commissioner of Income-tax, repo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or an enterprise and from and out of such an undertaking or an enterprise set up, any profit or gain is derived, falling under the subsection covered by subsection (4) of section 80-LA of the Income-tax 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 gain 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 80-IA(1) can be interpreted. The expression derived used in the said section 80-IA(1) in the beginning as well as in the last part of sub-section (4) make ..... X X X X Extracts X X X X X X X X Extracts X X X X
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