Deduction under section 80IA upheld for power generation plant and turbine undertaking

The ITAT Hyderabad Bench upheld the CIT(A)'s decision allowing deduction u/s. 80IA for the captive power generation plant and 9.5 MW turbine power undertaking. The Revenue's challenge was dismissed as the issue was consistent with prior rulings in the assessee's favor. The appeal by the Revenue was ultimately dismissed on 15th June, 2012.

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Issues involved: Challenge to allowance of deduction u/s. 80IA of the Income-tax Act, 1961 on captive power generation plant.

Issue 1: Challenge to deduction u/s. 80IA
- The Revenue challenged the allowance of deduction claimed u/s. 80IA by the CIT(A) on the captive power generation plant of the assessee.
- The Assessing Officer disallowed the claim of deduction u/s. 80IA on the basis that the paper mill, boiler unit, and turbine constitute one single industrial undertaking.
- The CIT(A) upheld the claim of the assessee for deduction u/s. 80IA in respect of the captive power generation undertaking and 9.5 MW turbine power undertaking.
- The ITAT Hyderabad Bench in earlier assessment years had allowed the claim of deduction u/s. 80IA in the assessee's own case.
- The CIT(A) directed the AO to compute the profits of the undertakings as per the guidelines contained in the ITAT order and allow the deduction u/s. 80IA for the assessment year in question.

Conclusion:
- The ITAT Hyderabad Bench found that the issue was squarely covered by its earlier orders in the assessee's own case for previous assessment years.
- The order passed by the CIT(A) was upheld, and the grounds raised by the Revenue were dismissed.
- The appeal by the Revenue was ultimately dismissed on 15th June, 2012.

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