Court Allows Deductions for Captive Power Generation & Liabilities under Section 80-IA(4)

The court ruled in favor of the assessee in all appeals, allowing deductions under section 80-IA(4) for captive power generation and provisions for liabilities. The court relied on previous decisions and legal precedents to support the eligibility of the deductions claimed by the assessee, dismissing all revenue appeals and upholding the decisions in favor of the assessee against the revenue authorities.

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Issues involved:
1. Whether deduction under section 80-IA(4) for generating power for captive consumption is allowable.
2. Whether withdrawal from revaluation reserve for book profit under section 115JB is permissible.
3. Consideration of additional grounds raised by the Department regarding deduction under section 80-IA(4) for captive power generation.
4. Allowance of interest claim payable to ONGC without actual payment.

Analysis:

1. Tax Appeal No. 1133 of 2011:
The issue revolved around the deduction under section 80-IA(4) for generating power for captive consumption. The Assessing Officer disallowed the claim due to lack of income from the plants, but the Commissioner (Appeals) allowed it based on previous decisions. The Tribunal upheld the decision. The court referred to a similar case where the issue was decided in favor of the assessee, relying on various judgments supporting the eligibility of the deduction. Consequently, the court ruled in favor of the assessee against the revenue.

2. Tax Appeal No. 912 of 2010:
This appeal questioned the non-consideration of additional grounds by the Tribunal regarding the deduction under section 80-IA(4) for captive power generation. Following a previous decision favoring the assessee, the court ruled in favor of the assessee against the revenue.

3. Tax Appeal No. 913 of 2010:
The first issue in this appeal was similar to the one in Tax Appeal No. 912 of 2010, and the court decided in favor of the assessee based on previous judgments. The second issue concerned the revenue appeal's dismissal due to the assessee's provision for liabilities. The court referred to a relevant Supreme Court judgment and ruled in favor of the assessee against the revenue.

4. Tax Appeal No. 914 of 2010:
This appeal focused on allowing the deduction of interest payable to ONGC without actual payment. The court cited a Supreme Court judgment regarding the allowance of liabilities arising in the accounting year, even if quantification and payment occur later. Following this precedent, the court ruled in favor of the assessee against the revenue, dismissing all revenue appeals.

In conclusion, the court consistently favored the assessee in all appeals, upholding deductions and provisions based on legal precedents and interpretations of relevant tax laws.

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