TaxTMI 
TaxTMI 
2010 (11) TMI 645
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....tricity Board is not entitled to relief under section 80-I of the Act? 2. Whether the Tribunal had valid material to hold that the assessee has not set up a separate undertaking for generation of electricity ignoring the fact that the lower authorities have not controverted that the wind electricity generation by separate undertaking is entitled to relief under section 80-IA only in respect of electricity sold to TNEB? 3. Whether the Tribunal was right in holding that deduction under section 80-IA is not allowable to the assessee as there is no positive income as recorded by the Assessing Officer and ignoring the findings of CIT(A)? 4. Whether on the facts and in the circumstances ....
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....?" 3. The issue is directly covered by the decision of this Court dated 7-6-2010 in Tax Case (Appeal) Nos. 68 to 70 of 2010. 4. The substantial question of law raised in these appeals was : "Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled to deduction under section 80-IA of the Income-tax Act in respect of notional profits on account on power generated from its own captive power plant and utilised by itself ?" 5. After considering the issue, the statutory requirement as prescribed under section 80-IA(1) has been stated in paras 8 and 9 of the abovesaid judgment which reads thus : "8. The contention that only whatever power generated from the sale to an outsider ....
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....rprise as referred to in sub-section (4) of section 80-IA. The dictionary meaning of the expression 'derive' in the New Oxford Dictionary of English states 'obtaining something from a specified source'. In section 80-IA(1) also no restriction has been imposed as regards the deriving of profit or gain in order to state that such profit or gain derived only through an outside source alone would make eligible for the benefits provided in the said section. 9. Therefore, there is no difficulty in holding that captive consumption of the power generated by the assessee from its own power plant would enable the respondent/assessee to derive profits and gains by working out the cost of such consumption of power inasmuch as the assessee is able to s....
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....l-established principle of law that a circular can only be made in consonance with the provisions of the enactment and the same cannot be derogatory to the purport sought to be achieved. Hence we are of the opinion that the circular relied upon by the learned counsel for the Revenue is in fact in favour of the assessee and therefore the said contention also cannot be accepted." 7. Mr. K. Subramanian, learned standing counsel for the respondent would however contend that the expression 'derived from' should be given restricted meaning in which event the claim of the appellant cannot be countenanced. According to the learned standing counsel since the business of the appellant is manufacture of petro products and generation of electricity is....