2018 (2) TMI 1787

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....llant : Shri Sesha Srinivas, DR For The Respondent : Shri G.V.N. Hari, AR ORDER PER D.S. SUNDER SINGH, Accountant Member: This appeal filed by the revenue is directed against order of the Commissioner of Income Tax (Appeals)-3 {CIT(A)}, Visakhapatnam dated 24.10.2016 for the assessment year 2011-12. 2. The revenue filed the appeal raising the following grounds: 1. The Ld. C....

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....appeal proceedings. Therefore, ground No.3 is dismissed as infructuous. 5. Ground No.2 is related to the allocation of cost of husk between the steam generation and power plant. During the assessment proceedings the assessing officer found that the assessee had claimed the deduction of Rs. 2,70,92,891/- u/s 80IA of the Income Tax Act, 1961 (hereinafter called as 'the Act'). The assessee....

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....the assessee was Rs. 1,17,34,991/-. The A.O. not being satisfied with the allocation made by the A.O, after going through the assessee's record and comparable cases, estimated the cost of consumption of husk at 55% of the total husk consumed in relation to the power generated by the power plant. Accordingly, recomputed the profit at Rs. 2,02,44,192/- and allowed the deduction. 6. Aggrieved by t....

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....10% is reasonable. For ready reference, we extract relevant in para No.16 of the order cited (supra) as under: 16. On a careful examination, we are inclined to accept the submissions of the Ld. Counsel for the assessee for the reason that the cost of steam is what is to be allocated between the power plant and the rice mill. There is no logic in segregating the cost into two parts and all....