Deduction under section 80ia

[Rakesh Bansal]

How the computation of income to be made in case of new power generating unit Which is selling power to another unit of same assessed company?                                                                  whether the  profit of the eligible unit be computed separately and the depreciation of  this unit has to be accounted on notional basis if the same has been otherwise adjusted against profit of other unit.      

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Deduction under section 80IA: compute eligible power unit income separately and allocate depreciation to the supplying unit. The power generating unit supplying another unit of the same assessed enterprise must be treated as the eligible undertaking and its income computed separately, including revenue from interunit sales; depreciation attributable to that unit must be recognised for computing its income for deduction purposes, even if previously adjusted against the purchasing unit, by appropriate notional allocation or accounting adjustment to reflect the unit's true taxable profits.