2016 (3) TMI 743

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....n in both the appeals, we heard them together and disposing of the same by this common order. 2. The only issue arises for consideration is deduction u/s 80IA of the Act. 3. Dr. Milind Madhukar Bhusari, ld. Departmental Representative submitted that during the course of assessment, the Assessing Officer found that the assessee claimed deduction u/s 80IA of the Act in respect of generation of power from a unit at OPG Nagar, Periyaobulapuram Village, Gummidipoondi. According to the ld. DR, the power plant was set up M/s Kanishk Steel Industries Ltd. The assessee entered into an agreement with M/s Kanishk Steel Industries Ltd. for operating the power plant. The Assessing Officer found that the assessee is not the owner of the power plant....

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.... grant of deduction u/s 80IA only to the person who owns the power plant. Referring to the submission of the ld. DR, the ld. Representative submitted that the assessee entered into an agreement with M/s Kanishk Steel Industries Ltd. for operation and generation of electricity. The ld. Representative further clarified that it is not a case of works contract. It is a simple case of operating the power plant for generation of electricity. The power plant was set up by M/s Kanishk Steel Industries Ltd. and there is no work remains to be executed by the assessee in respect of formation of the power plant. According to the ld. Representative, the term 'works contract' means a work has to be executed by utilizing the raw material supplied by a thi....

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....d that the assessee need not be the owner of the power plant for claiming deduction u/s 80IA of the Act. After placing reliance on the judgment of the Madras High Court in the case of M/s K.A Infrastructure Pvt. Ltd. (supra), this Tribunal found that the assessee is entitled for deduction u/s 80IA of the Act. In fact, the CIT(A), after reproducing the observation made by this Tribunal in assessee's own case for assessment year 2009-10, allowed the claim of the assessee for deduction u/s 80IA of the Act. 7. Now for the assessment years under consideration, the ld. DR is raising an additional ground with regard to 'works contract' on the basis of Explanation to sec. 80IA introduced by Finance Act, 2009. We have carefully gone through the E....