2013 (5) TMI 357

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....espondent : Mr. R. N. Bajoria & Mr. J.P. Khaitan, Sr. Advs. with Mr. Sanjoy Bhowmik & Mr. Siddharth Das, Advs. ORDER The Assessing Officer reduced the profits shown by the assessee at a sum of Rs.36,95,49,232/- to a sum of Rs.6,82,21,261/- for the purpose of computing the deduction allowable under Section 80IA of the Income Tax Act on the basis of the following reasoning : "The market val....

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.... value will reduce the profit by similar amount." The assessing officer evidently ignored the explanation offered by the assessee which he has recorded in the assessment order which reads inter alia as follows :- "As your honour asked why the sale price should not be restricted to the rate at which sold to UPPCL, in this connection we again draw your kind attention that PGC-I was set up only....

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...."We find that the price at which State Electricity Boards sells electricity to industrial consumers is representative of the price that electricity would ordinarily fetch in the open market and i.e. the price which has been adopted by the assessee for the electricity generated by the eligible business transferred to its other business for the purpose of computation of profits and gains of the elig....