TaxTMI 
TaxTMI 
2018 (2) TMI 1724
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..... No. 38/K/2016. 2. The solitary issue involved in the appeal of the revenue relates to the deletion of the Ld. CIT(A) of the addition of Rs. 2,13,47,159/- made by the A.O. by disallowing the assessee's claim for deduction under section 80IA to that extent. 3. The assessee in the present case is a company which is engaged in the business of manufacturing of chemicals and power. The return of income for the year under consideration was filed by it on 15.11.2006 declaring a total income of Rs. 4,12,68,356/- under the normal provisions of the Act and book profit of Rs. 28,64,85,205/- under section 115JB of the Act. In the said return, deduction of Rs. 24,12,85,863/- was claimed by the assessee company under section 80IA in respect of profit ....
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....allenging the validity of the said assessment as well as disputing the addition made therein by the A.O. on account of disallowance of deduction under section 80IA to the extent of Rs. 2,13,47,159/-. The Ld. CIT(A) did not find merit in the preliminary issue raised by the assessee challenging the validity of the assessment made by the A.O. under section 147/143(3) and upholding the validity of the said assessment, he decided this issue against the assessee. As regards the issue of disallowance made by the A.O. under section 80IA, the Ld. CIT(A) found that a similar issue was decided by ITAT in favour of the assessee for A.Y. 2007-08 vide an order dated 31.08.2012 passed in ITA No. 334/K/2011. He accordingly followed the said order of the IT....
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....the price at which power was supplied by assessee to Board was determined entirely in term of statutory regulation and such a price cannot be equated as market value appearing in explanation appended to section 80IA(8) of the Act and for the purposes of computation of deduction under this section excluding the duties, cess, taxes etc. Even otherwise, in this issue is now covered by the decision of Hon'ble Jurisdictional High Court in the case of CIT vs Graphite India G.A. No. 3114 of 2008, ITA No. 733 of 2008 dated 10.012.2008. This issue of assessee's appeal is allowed in principle but subject to re-computation of deduction u/s 80IA of the Act excluding the electricity duty, taxes etc. by the A.O." 6. As submitted by the learned counsel f....