TaxTMI 
TaxTMI 
2017 (5) TMI 1400
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....S.S. Gupta, Ld. Authorized Representative appeared on behalf of assessee and Shri Amitava Bhattacharya, Ld. Departmental Representative represented on behalf of Revenue. 2. At the outset, it is observed that there is a delay of 32 days on the part of assessee in fling this appeal before the Tribunal. In this regard, assessee has filed an application seeking condonation of the said delay and keeping in view the reasons given thereon, which is duly supported by an affidavit filed by the assessee, we are of the view that there is a sufficient cause for the delay on the part of assessee in filing present appeal. Hence, we condone the delay and proceed to dispose of this appeal of the assessee on merit. 3. The only inter-connected issue raised....
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....has direct nexus with the business as it was provided on account of failure of machines to generate the electricity units as guaranteed. Therefore, the compensation was awarded. However, Ld. CIT(A) disregard the submission of assessee and confirmed the order of Assessing Officer by observing as under:- "... ... In the case of the appellant it is clear that the compensation was to be given to the Appellant as per the agreement with M/s Suzlon Energy Ltd., which was the supplier of the Windmills was not the Appellant's operational income but was sonly incidental to its business activity and constitutes a source of income beyond the first degree or proximate nexus between profits and the industrial undertaking. Therefore the same cannot be co....
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....nd, Ld. DR submitted that the aforesaid compensation is in the nature of incentive given to assessee and it was limited for a period of two years. Thus, the aforesaid incentive cannot be considered for the purpose of deduction u/s. 80-IA of the Act. He vehemently relied on the order of Authorities Below. 7. We have heard the rival contentions of both the parties and perused and carefully considered the materials on record; including the judicial pronouncements cited and placed reliance upon. The issue before us is whether the compensation received by the assessee is business income and therefore eligible for the deduction under section 80IA of the Act. It is undisputed fact that the compensation was received by the assessee from SEL as the....
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....aking of the assessee company and deduction u/s. 80IA of the Act is allowable. Keeping in view of the ratio of law laid down by the Hon'ble Supreme Court in the case of Meghalaya Steels Limited (supra) and the cited judgment of co-ordinate benches of the Tribunal in favour of the assessee company, we hold that the amount received by the assessee company from M/s Suzlon Energy Ltd. Of Rs. 35,55,880/- on account of specific performance being compensation on account of shortfall in the power generated by the assessee company vis-à-vis the minimum guarantee rated capacity of production of power assured by Suzlon Energy Limited is to be held to be derived from the windmill power undertaking engaged in generation of power and is enti....