2019 (2) TMI 1211

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....7,07,481/is a capital receipt not liable to Income-tax? 2. Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in deleting the addition made by the AO by disallowing the deduction u/s 80IA of Rs. 86,51,99,227/claimed by the assessee?" 2. Respondent-assessee is a registered company. For the assessment year 2006-07, the assessee had filed a return of income. Question No.1 raised by the revenue relates to the assessee's claim of a sum of Rs. 85.97 crores (rounded off) received by way of sales tax exemption scheme of the Government of Gujarat and Government of Uttar Pradesh in relation to the assessee's three different projects. The assessee contended that the receipt was capital in nature ....

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....r of the assessee and against the revenue. Accordingly appeal is dismissed." 3. We may notice that similar issue came up before this Court in case of The Commissioner of Income-Tax-LTU Vs. M/s. Indian Petrochemicals Corporation Limited reported in Income Tax Appeal No.1428 of 2016. Following the decision of the Gujarat High Court in the above noted decision revenue's appeal was dismissed. 4. Learned counsel Shri Mistri for the respondent-assessee however fairly pointed out that in the present case the asssessee's claim arose out of two more receipts both under the sales tax exemption scheme of Government of Uttar Pradesh. We notice that this issue has been elaborately discussed by the Commissioner (Appeals). He took note of th....

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....deduction under Section 80IA, the ITAT in paragraph 21 onwards has noted the factual findings and also referred to the order of the Maharashtra Electricity Regulatory Authority (for short "MERC"). Paragraph 36 set outs as to how the claim arose. The claim has been considered in the light of Section 80IA and particularly proviso and explanation thereto. The Tribunal eventually held that till the Assessment Year 2005-2006, the Revenue considered the rate at which the power was purchased by the Assessee from Tata Power Company as market value. There is nothing brought on record as to how the rate determined by the MERC is the true market value. The Assessee gave explanation that the rates determined by the MERC do not reflect the correct ma....