TaxTMI 
TaxTMI 
TaxTMI 
2013 (10) TMI 1020
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....y invoking the provisions of subsection (8) of section 80IA of the Act. Ld. CIT(A) completely erred in not appreciating the fact that the Hon'ble Tribunal in A.Y.2006/07adjudicated ground against disallowance of deduction claimed u/s. 80IA in case of new power plant only (covered before him vide ground No.8) whereas deduction denied in respect of captive power plant as well as co- generation plant through oversight is not at all discussed in the said order of the Hon'ble Tribunal. Ld. CIT(A) ought to have independently adjudicated these issues instead of setting them aside to AO to follow order of the earlier year. 2. Ld. CIT(A) erred in law and on facts in confirming action of AO in making addition of irrecoverable balances written off of Rs.89,000/- following order of the Hon'ble Tribunal for A.Y.2006/07. Ld. CIT(A) failed to appreciate that the amount written off during the year was on account of old balance of call & allotment money receivable whereas in A.Y. 2006/07 write off was in respect of advances given against purchase ground on merits instead of following Tribunal order of earlier year based on entirely different set of facts. 3. Ld. CIT(A) erred in law and on facts i....
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.... 28,31,33,872/- Less: Actual cost of generation of steam & Electricity 18,14,19,979/- GAIN/LOSS as per books before depn & lease rent : 10,17,13,893/- The Ld. A.O. has calculated the gain at 35.70%. The same seemed inordinately high and the A.O given the reasonable opportunity of being heard on this issue which was responded by the appellant before him. After analyzing the assessee's reply and Auditor's certificate, it was found to the A.O. that the credit for steam has been taken at rate of Rs. 564.903 which was the actual cost of generation of steam. Hence, no profit is accounted for on the generation of steam. As such, the entire profit arises from the credit for electricity which was 74.08% as per the Auditor's Certificate. Since, the Ld. A.O. found high rate of profit, therefore, he applied to ascertain the methodology. The rate of credit for electricity was taken at Rs.5.835 and the basis for the same was called for. It was submitted before the Ld. A.O. that the same was the Gujarat Electricity Board rate which was adopted for taking credit. The Ld. A.O. had not found rate charged by the G.E.B comparable because of different functions and size of the electricity....
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....2.23% as per the Auditor's Certificate. Considering the assessee's own computation as per the Auditor's Certificate, the deduction u/s. 80IA was computed by the Ld. A.O. as under :- Particulars Qty. Rate Amount Cost Profit Credit for steam 9.399 564.9 5309608 5309608 NIL Credit for Electricity 16380000 5.594 91629720 74958580 16671140 TOTAL 16671140 Add: Depreciation as claimed 4133274 Less: Depreciation on lease rent as claimed 435879 20368535 The Ld. A.O has applied both the methods on Co-generation plant which is reproduced as under :- (a) Reducing the notional rate of credit from Rs.5.835 to Rs. 4.335 Steam 9399 X 559.224 53,09,668/- Electricity 16380000 X 4.335 7,10,07,300/- 7,63,16,908/- Less Cost of generation 8,02,68188/- (-) 39,51,280/- (b) Reducing the profit re-computed at 22.23% to 17.20% Electricity as claimed 16380000 X 5.594 9,16,29,720/- Profit @ 17.20% 1,57,58,020/- The Ld. A.O. has calculated the deduction u/s. 80IA(8) for Co- generation Plant at Rs.NIL. Thus, the total disallowance is Rs. 20,44,35,651/-. 3. Being aggrieved by the order of the Ld. A.O, the assessee carried the matter before the L....
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....statistical purpose only. 6. Ground No.2 is against confirming the addition on account of irrecoverable balance written off of Rs.89,0000/- following the order of the Hon. ITAT in A.Y.2006-07 by the Ld. CIT(Appeals). The Ld. A.O. found that the assessee had written off of Rs.89,0000/- irrecoverable against old balance of allotment and call money. The Ld. A.O. given the reasonable opportunity of being heard and the assessee admitted before the Ld. A.O its capital expenditure which was not found satisfactory to the A.O. He made the addition of Rs.89,000/- 7. The Ld. CIT(Appeal) confirmed the addition by observing that the similar addition made in A.Y. 2006-07 has been dismissed by the ITAT vide order dated 13.07.2012 in ITA No.3118/Ahd/2010. The Ld. Consul fairly accepted that the decision of the Hon. ITAT is against the assessee which was confirmed by the Ld. A.R. In A.Y. 2006-07 the amount given to M/s. Sando Industries as an advance for purchase of equipment. The advance was given for acquiring the capital asset. However, in the year under consideration, the appellant had written off irrecoverable balance of allotment and call money which is neither capital expenditure nor reven....