2017 (7) TMI 743

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....sessment year 2004-05 and ITA Nos.493/JU/2007 & 576/JU/2007 against the assessment year 2003-04. By the order aforesaid, learned Tribunal while dismissing the appeal preferred by the Revenue affirmed the order passed by learned Commissioner of Income Tax(Appeals). Learned Income Tax Appellate Tribunal after discussing the entire issue on merits arrived at the conclusion that income from generation of power, may that be in the nature of captive generation, make the assessee entitled for deduction under Section 80-IA of the Income Tax Act, 1961 in respect of notional income from generation of electricity which was captively consumed by the assessee itself in another unit of the same company. The discussion made by learned Tribunal in the ju....

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....ating of power or distributing power is to be reduced from the book profit arrived as per the provision of sec. 115JA(ii). Undisputedly, the term 'business' is defined in sec. 2(13) of the I.T. Act which is an inclusive definition comprehending trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. This clause clearly shows that the activity of 'manufacture' is also a business by applying this definition to the provision contained in Explanation (4) to sub-section (2) of sec. 115JA(ii). There is no requirement for sale of commodity in order to constitute a business as mentioned therein. Impliedly, the manufacture itself is a business. Undisputedly, in the case in hand, the assessee has pr....

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....ein it was held that the AO, while computing the book profits of a company has the power only to examine whether such books of account are certified by the authorities under the Company's Act as having been properly maintained in accordance with Company's Act and thereafter he has the limited power of making increases and reductions as provided in Explanation below sec.115JAA of the Act. In this case, the ld. CIT(A), however, did not limit his scope the powers as laid down by the dictum of Hon'ble Apex Court and carried adjustment which was not permitted by sec.115JAA of the Act by reducing the profits which were not part of the book profit on account of sale/transfer of electricity by assessee's two units to other units of the company. 9....

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....ee as he had transferred the electricity at cost and by way of commercial accounting to its other units formed a part of the consolidated profit and loss account drawn by the assessee, book profit of which is found to have been taken as a basis for computing deemed income for the year under consideration. Hence we are of the considered opinion that the ld. CIT(A)'s order is not infirm in any way requiring any interference. Hence the same is hereby upheld by finding the issue raised by the department as devoid of merits and dismiss the same." It is submitted by Mr. Praful Khurana, learned counsel appearing on behalf of assessee that the issue under adjudication is no more res integra in view of the judgment of Hon'ble Supreme Court in Civi....