2011 (8) TMI 1138

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....resent appeal read as under:- "2. a. Honourable Commissioner of Income tax (Appeals) erred in upholding the action of the Assessing Officer in following the rate adopted by the TNEB (` 2.70 per unit) for purchasing power from third parties in preference to the rate (` 3.50 per unit) at which the appellant was given set off by TNEB. b. Honourable Commissioner of Income tax (Appeals) erred in holding that the argument of the appellant that there is no free market for sale of power generated by the appellant is not acceptable, where, on facts, the appellant has no other alternative except to sell the power generated to TNEB or use for its captive consumption. c. Honourable Commissioner of Income tax (Appeals) erred in endorsing the view o....

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.... leave of the Hon'ble Income-tax Appellate Tribunal a) To reverse the order of the Hon'ble Commissioner of Income-tax(Appeals) in upholding the action of the Assessing Officer by adopting the rate of ` 2.70 per unit as selling price for the power units generated by the Windmill b) To direct the assessing officer to adopt the selling rate of power units generated by windmill @ ` 3.50 per unit while computing the profit derived from windmill eligible u/s 80IA." 3. We heard Shri T.Banusekar, the learned Chartered Accountant appearing for the assessee and Shri K.E.B.Rengarajan, the learned Standing Counsel appearing for the Revenue. The very same issue was recently considered by the Income-tax Appellate Tribunal, D-Bench, Chennai in the ca....

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.... context has been discussed by the Hon'ble jurisdictional High Court in the case of Commissioner of Income-tax, Madurai vs. Thiagarajar Mills Ltd., Kappalur, Madurai. While delivering the judgment in Tax Case(Appeal) Nos.68 to 70 of 2010 dated 7-6-2010 their Lordships have held as under:- "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 profit and gains by working out the cost of such consumption of power inasmuch as the assessee is able to save to that extent which would certainly be covered by section 80IA(1). When such will be the outcome out of own consumption of the power generated and gained by the ....