TaxTMI 
TaxTMI 
2017 (5) TMI 424
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....1961; in short "the Act". Heard both sides. Case files perused. 2. It is evident from Revenue's pleadings that it seeks to raise two substantive grounds identical in both of its appeals. First substantive ground reads that the Revenue endeavors to restore Section 80IA deduction disallowance of Rs. 33,45,281/- in former and Rs. 43,24,778/- in latter assessment year as made in assessment orders and deleted in the lower appellate proceedings. Relevant facts thereto are in a very narrow compass. This assessee manufactures tumblers and glass bottles. It also has a captive power generation unit eligible for Section 80IA deduction. This eligible unit generates power which is transferred to assessee's other unit. The assessee in turn charges ....
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....see for the purpose of computing eligible profit the assessee has taken the market value of the power produced by Captive plant at the rate of 4.9 per unit. W e noted that the similar issue has arisen before the Mumbai Bench of the Tribunal in the case of W est Coast Paper Mills Ltd V/s JCIT reported in (2006) 100 TTJ (Mumbai) 833, in which the Tribunal, on this issue, what should be the price attributable to the power generated and consumed by the assessee for the purpose of computing the deduction available under section 80IA after availing the provisions of section 80IA (9) has held as under : "32. Having held that the assessee is entitled for the deduction available under section 80IA, the next question is what should be the pr....
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....cted at the prevalent market value. This principle has been considered and upheld by the Supreme Court in the case of Thiru Arooran Sugars ltd V/s CIT (1997) 142 CTR (SC) 9: (1997) 227ITR 432 (SC). Therefore, we direct the assessing Authority to work out the profits on the basis of the price of the power generated by the assessee at the average of the annual landed cost of electricity purchased by the assessee from Karnataka State Electricity Board during the impugned previous year. It may be determined on the basis of payment details available from the bills issued by the Karnataka State Electricity Board, during the year under consideration" 33. This issue is therefore, decided in favour of the assessee" 12. In this case....
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....for Bonus. Relevant portions of the Assessing Officer's order has been reproduced in para 8.2 (supra) of this, order. 10.2 During the course of appellate proceedings, the assessee submitted as under- "It is submitted that provision for bonus is regularly made on 31st March every year and bonus is paid to employees shortly before Diwali. As Diwali happens to be after the due date for filing of return of income, it is disallowed in computation of income under section 438 of Income-tax Act. It is submitted that the provisions for computation of book profit under section 115JB are different from provisions for computation of income under other provisions of Income-tax Act. The disallowance under section 43B is not required....
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.... of accounts as per the Payment of Bonus Act as well as as per the applicable Accounting Standard and provisions for the Companies Act, 1956. Under the Payment of Bonus Act, where the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer shall in lieu of such minimum bonus, be bound to pay an amount in proportion to the salary or wages earned by the employee during the accounting year subject to a maximum of twenty percent of such salary or wages. We enclose herewith computation of allocable surplus compute in 'Form A' as per the Payment of Bonus Act. The amount of allocable surplus computed under the Act was Rs. 1,79,74,415/-which exceeds the amount of maximum bonus payable u....