2018 (4) TMI 747

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....itted on the following substantial questions of law : "1. Whether the Appellate Tribunal is correct in law in confirming the action of the respondent in rejecting the claim of deduction under Section 80IA of the Act in the computation of taxable total income comprised and derived from establishing, operating and maintaining the power plant engaged in generation or generation and distribution of power ? 2. Whether the Tribunal is correct in law in concluding that the provisions of Sub-Section 13 to Section 80IA of the Act inserted retrospective in the Act were attracted to the facts of the case even though the scope of the contract under consideration was, admittedly, a service contract ? and 3. Whether the Tribunal is correct in law i....

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.... was denied on the ground that the appellant's undertaking has not been set up for generation or for generation and distribution of power. As rightly pointed out by the Tribunal, the main purpose of providing deduction under Section 80IA of the said Act is to encourage investment in certain specific industries and to augment the industrialization of the country. The Tribunal found from the documents produced by the assessee that the assessee made a total investment of less than Rs. 10 lakhs (gross), but claimed deduction of more than Rs. 67 lakhs. Therefore, the Tribunal further found that granting deduction under Section 80IA of the said Act to the assessee in this background would defeat the very purpose of Section 80IA of the said Ac....

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....xt aspect as to whether the contention raised by the assessee by referring to the definition of 'generating company' under the provisions of the Electricity Act, 2003, this issue was also considered by the Assessing Officer as well as the First Appellate Authority and the Tribunal. 12. The learned counsel for the appellant reiterated that Section 2(28) of the Electricity Act, 2003 defines 'generating company', to mean any company or body corporate or association or body of individuals, whether incorporated or not, or artificial judicial person, which owns or operates or maintains a generating station. Further reference was made to Section 2(29) of the Electricity Act, 2003, which defines 'generate' to mean to produc....