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TMI Blog2025 (2) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... TA No.424/Kol/2022 for the assessment year 2018-19. 2. Though the revenue has suggested nine substantial questions of law, we find the following two questions alone to be relevant which are quoted hereinbelow : "(a) WHETHER in facts of the case and in law, the Hon'ble ITAT is justified upholding the internal CUP applied by the assessee to benchmark the transaction (sale of power) to its AE, as well as computation of deduction under section 80-IA of the Act, whereas as per explanation to section 80-IA(8) of the Act, "market value" in relation to any goods or services, means (a) the price that such goods or services would ordinarily fetch in the open market; or (b) the arm's length price as defined in clause (ii) of section 92F, where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the learned Tribunal for the assessment year 2016-17 and ITAT/20/2025 is pending before this Court. Admittedly, there would be gross delay in filing the appeal since the order impugned in the said appeal passed by the learned Tribunal is dated 26.10.2021. Be that as it may, the legal issue involved in the instant case has since been settled by the Hon'ble Supreme Court in the case of Commissioner of Income Tax Vs. Jindal Steel and Power Limited reported at [2024] 460 ITR 162 (SC). The facts dealt with by the Hon'ble Court in the said case are more or less identical to the facts of the case on hand. As in the case before the Hon'ble Supreme Court, the assessee before us having found that the electricity supplied by the State Electricity B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the said assessment year. Therefore, it will be a good ground to dismiss the revenue's appeal. Nonetheless, since Ms. Smita Das De, learned senior standing counsel assisted by Mr. Prithu Dudheria, learned senior standing counsel for the appellant/revenue have elaborately made submissions on the legal aspects, the Court is constrained to take a decision on merits. For the purpose of taking a decision on merits, we need not labour much as we are guided by the decision of the Hon'ble Supreme Court in Jindal Steel and Power Limited. In fact, one of the appeals which was dealt with by the Hon'ble Supreme Court was an appeal arising out of an order passed by the Hon'ble Division Bench of this Court in the case of CIT Vs. ITC reported at [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Electricity Board supplied power to the industrial consumers has to be taken as the market value for computing deduction under section 80-IA of the Act. 30. Thus on a careful consideration, we are of the view that the market value of the power supplied by the State Electricity Board to the industrial consumers should be construed to be the market value of electricity. It should not be compared with the rate of power sold to or supplied to the State Electricity Board since the rate of power to a supplier cannot be the market rate of power sold to a consumer in the open market. The State Electricity Board's rate when it supplies power to the consumers have to be taken as the market value for computing the deduction under section 80-IA of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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