https://www.taxtmi.com/caselaws?id=755349 ITAT Kolkata dismissed revenue's appeal regarding transfer pricing adjustment for captive power plant electricity supply. The tribunal held that for computing Section 80IA deduction, market value of electricity should be determined by comparing rates charged by State Electricity Board to industrial consumers, not rates paid to power generators. Following precedent in Rungta Mines Ltd, the court ruled that electricity rates from distribution companies to consumers represent true market value, not generator-to-distributor rates which don't reflect uncontrolled market conditions. The assessee's deduction computation was upheld. en-us Fri, 15 Dec 2023 00:00:00 +0530 Wed, 10 Jul 2024 08:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755349 ITAT Kolkata dismissed revenue's appeal regarding transfer pricing adjustment for captive power plant electricity supply. The tribunal held that for computing Section 80IA deduction, market value of electricity should be determined by comparing rates charged by State Electricity Board to industrial consumers, not rates paid to power generators. Following precedent in Rungta Mines Ltd, the court ruled that electricity rates from distribution companies to consumers represent true market value, not generator-to-distributor rates which don't reflect uncontrolled market conditions. The assessee's deduction computation was upheld. Case-Laws Income Tax Fri, 15 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755349